Movado Group (NYSE:MOV) versus PVH (NYSE:PVH) Critical Survey

Movado Group (NYSE:MOV) and PVH (NYSE:PVH) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, earnings, risk, analyst recommendations and institutional ownership.

Dividends

Movado Group pays an annual dividend of $1.60 per share and has a dividend yield of 5.0%. PVH pays an annual dividend of $0.15 per share and has a dividend yield of 0.2%. Movado Group pays out 88.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. PVH pays out -4.1% of its earnings in the form of a dividend.

Risk and Volatility

Movado Group has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500. Comparatively, PVH has a beta of 1.74, suggesting that its share price is 74% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Movado Group and PVH, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Movado Group	0	2	1	1	2.75
PVH	3	5	6	0	2.21

Movado Group currently has a consensus target price of $40.00, suggesting a potential upside of 24.94%. PVH has a consensus target price of $87.91, suggesting a potential downside of 4.91%. Given Movado Group’s stronger consensus rating and higher probable upside, research analysts clearly believe Movado Group is more favorable than PVH.

Valuation & Earnings

This table compares Movado Group and PVH”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Movado Group	$671.31 million	1.06	$26.55 million	$1.80	17.79
PVH	$8.95 billion	0.48	$25.30 million	($3.70)	-24.99

Movado Group has higher earnings, but lower revenue than PVH. PVH is trading at a lower price-to-earnings ratio than Movado Group, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

72.1% of Movado Group shares are owned by institutional investors. Comparatively, 97.3% of PVH shares are owned by institutional investors. 30.8% of Movado Group shares are owned by insiders. Comparatively, 1.5% of PVH shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Movado Group and PVH’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Movado Group	6.00%	8.49%	5.78%
PVH	-1.89%	11.94%	5.04%

Summary

Movado Group beats PVH on 11 of the 17 factors compared between the two stocks.

About Movado Group

Movado Group designs, sources, markets and distributes watches and other accessories. Its portfolio includes its namesake Movado brand and other owned brands, as well as products made under licensing agreements with fashion and lifestyle brands. The company sells through wholesale partners, its own retail stores and e-commerce channels. The company traces its origins to 1881, when watchmaker Achille Ditesheim established a watchmaking business in La Chaux-de-Fonds, Switzerland. The Movado name was adopted in 1905; it means “always in motion” in Esperanto.

About PVH

PVH Corp. is a global apparel company whose principal brands are Calvin Klein and Tommy Hilfiger. It designs, markets and sells clothing, footwear, accessories and related products, including underwear and fragrance offered through licensing arrangements. The company serves customers in North America, Europe and Asia-Pacific through wholesale partners and direct-to-consumer channels, including retail stores and e-commerce. Its products are sold under its flagship brands and through licensed product categories.