Fossil Group (NASDAQ:FOSL – Get Rating) and The Swatch Group (OTCMKTS:SWGNF – Get Rating) are both retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, earnings, risk and analyst recommendations.
Analyst Ratings
This is a summary of recent recommendations for Fossil Group and The Swatch Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Fossil Group | 0 | 0 | 0 | 0 | N/A |
| The Swatch Group | 0 | 0 | 0 | 0 | N/A |
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Fossil Group | $1.63 billion | 0.08 | -$44.16 million | ($1.24) | -1.94 |
| The Swatch Group | N/A | N/A | N/A | $6.69 | 8.34 |
The Swatch Group has lower revenue, but higher earnings than Fossil Group. Fossil Group is trading at a lower price-to-earnings ratio than The Swatch Group, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Fossil Group and The Swatch Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Fossil Group | -3.92% | -12.56% | -3.97% |
| The Swatch Group | N/A | N/A | N/A |
Institutional & Insider Ownership
52.9% of Fossil Group shares are owned by institutional investors. Comparatively, 5.1% of The Swatch Group shares are owned by institutional investors. 9.8% of Fossil Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
The Swatch Group beats Fossil Group on 5 of the 8 factors compared between the two stocks.
About Fossil Group
Fossil Group, Inc., together with its subsidiaries, designs, develops, markets, and distributes consumer fashion accessories in the United States, Europe, Asia, and internationally. The company's products include traditional watches, smartwatches, jewelry, handbags, small leather goods, belts, and sunglasses. It also manufactures and distributes private label brands, as well as purchases and resells branded products in non-FOSSIL branded retail stores. The company offers its products under its proprietary brands, such as FOSSIL, SKAGEN, MICHELE, RELIC, and ZODIAC; and under the licensed brands, including ARMANI EXCHANGE, DIESEL, DKNY, EMPORIO ARMANI, KATE SPADE NEW YORK, MICHAEL KORS, PUMA, TORY BURCH, Skechers, and BMW. The company sells its products through company-owned retail and outlet stores, department stores, specialty retail stores, specialty watch and jewelry stores, mass market stores, e-commerce sites, licensed and franchised FOSSIL retail stores, and retail concessions, as well as sells its products on airlines and cruise ships. The company was formerly known as Fossil, Inc. and changed its name to Fossil Group, Inc. in May 2013. Fossil Group, Inc. was founded in 1984 and is headquartered in Richardson, Texas.
About The Swatch Group
The Swatch Group AG designs, manufactures, and sells finished watches, jewelry, and watch movements and components worldwide. The company operates through Watches & Jewelry and Electronic Systems segments. The Watches & Jewelry segment designs, produces, and commercializes watches and jewelry. The Electronic Systems segment engages in the design, production, and commercialization of electronic components, as well as sports timing activities. It is also involved in the provision of assembly, research and development, administration, polishing, logistics and distribution, and customer services; and hard material products, microelectronics, watch cases and crowns, miniature low-frequency quartz crystals, thin wires, miniature batteries, watch dials and bracelets, watch hands, sports timing technology and equipment, precision parts, and assembly electronic components. In addition, the company engages in retail, communication, real estate, real estate management, finance, reinsurance, and art center businesses. It offers its watch and jewelry products primarily under the Breguet, Harry Winston, Blancpain, Glashütte Original, Jaquet Droz, Léon Hatot, Omega, Longines, Rado, Union Glashütte, Tissot, Balmain, Certina, Mido, Hamilton, Swatch, and Flik Flak brands. The company was founded in 1983 and is headquartered in Biel/Bienne, Switzerland.
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