Head-To-Head Review: Fossil Group (NASDAQ:FOSL) vs. Xcel Brands (NASDAQ:XELB)

Xcel Brands (NASDAQ:XELB) and Fossil Group (NASDAQ:FOSL) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, valuation, earnings, risk, analyst recommendations and profitability.

Earnings and Valuation

This table compares Xcel Brands and Fossil Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xcel Brands	$4.94 million	1.18	-$17.46 million	($3.39)	-0.26
Fossil Group	$1.00 billion	0.28	-$78.30 million	($1.28)	-3.70

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

Volatility & Risk

Xcel Brands has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500. Comparatively, Fossil Group has a beta of 1.61, indicating that its share price is 61% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Xcel Brands and Fossil Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xcel Brands	1	0	1	0	2.00
Fossil Group	1	1	2	1	2.60

Xcel Brands currently has a consensus price target of $3.00, suggesting a potential upside of 237.19%. Fossil Group has a consensus price target of $9.00, suggesting a potential upside of 90.27%. Given Xcel Brands’ higher probable upside, analysts plainly believe Xcel Brands is more favorable than Fossil Group.

Profitability

This table compares Xcel Brands and Fossil Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Xcel Brands	-343.68%	-109.17%	-42.19%
Fossil Group	-7.09%	-59.76%	-7.53%

Institutional & Insider Ownership

18.5% of Xcel Brands shares are owned by institutional investors. Comparatively, 61.1% of Fossil Group shares are owned by institutional investors. 29.5% of Xcel Brands shares are owned by insiders. Comparatively, 3.8% of Fossil Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Fossil Group beats Xcel Brands on 10 of the 15 factors compared between the two stocks.

About Xcel Brands

Xcel Brands, Inc., together with its subsidiaries, operates as a media and consumer products company in the United States. The company designs, produces, markets, wholesales, and sells branded apparel, footwear, accessories, jewelry, home goods, and other consumer products; and acquires consumer lifestyle brands, including the Isaac Mizrahi, the LOGO by Lori Goldstein, the Judith Ripka, the Halston brand, the C Wonder, the TowerHill by Christie Brinkley brand (the CB brand), and other brands, as well as manages the Longaberger brand. It licenses its brands to third parties; and designs, produces, markets, and distributes through an omni-channel retail sales strategy, which include distribution through interactive television, digital live-stream shopping, brick-and-mortar retail, and e-commerce channels. The company also offers live streaming, social media and other marketing, and public relations support for its brands. In addition, it markets its brands through www.isaacmizrahi.com; www.halston.com; www.judithripka.com; www.cwonder.com; www.lorigoldstein.com; and www.longaberger.com. Xcel Brands, Inc. was founded in 2011 and is headquartered in New York, New York.

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 branded products purchased for resell in other 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, TORY BURCH, and Skechers. The company sells its products through company-owned retail and outlet stores, department and specialty retail stores, mass market stores, e-commerce sites, licensed and franchised FOSSIL retail stores, and retail concessions, as well as sells its products on airlines. 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.