Head-To-Head Analysis: Movado Group (MOV) and The Competition

Movado Group (NYSE:MOV) is one of 117 public companies in the “Textiles, Apparel & Luxury Goods” industry, but how does it weigh in compared to its competitors? We will compare Movado Group to similar businesses based on the strength of its dividends, earnings, valuation, analyst recommendations, profitability, institutional ownership and risk.

Earnings & Valuation

This table compares Movado Group and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Movado Group	$671.31 million	$26.55 million	25.75
Movado Group Competitors	$5.73 billion	$464.30 million	29.02

Movado Group’s competitors have higher revenue and earnings than Movado Group. Movado Group is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of current ratings for Movado Group and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Movado Group	0	1	1	2	3.25
Movado Group Competitors	1556	7504	10074	338	2.47

Movado Group currently has a consensus target price of $40.00, indicating a potential upside of 10.95%. As a group, “Textiles, Apparel & Luxury Goods” companies have a potential upside of 14.21%. Given Movado Group’s competitors higher possible upside, analysts plainly believe Movado Group has less favorable growth aspects than its competitors.

Profitability

This table compares Movado Group and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Movado Group	4.70%	7.13%	4.81%
Movado Group Competitors	-3.52%	13.24%	2.57%

Dividends

Movado Group pays an annual dividend of $1.60 per share and has a dividend yield of 4.4%. Movado Group pays out 114.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Textiles, Apparel & Luxury Goods” companies pay a dividend yield of 3.2% and pay out 23.2% of their earnings in the form of a dividend.

Risk and Volatility

Movado Group has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500. Comparatively, Movado Group’s competitors have a beta of 0.96, indicating that their average share price is 4% less volatile than the S&P 500.

Institutional and Insider Ownership

72.1% of Movado Group shares are owned by institutional investors. Comparatively, 54.5% of shares of all “Textiles, Apparel & Luxury Goods” companies are owned by institutional investors. 30.8% of Movado Group shares are owned by insiders. Comparatively, 16.3% of shares of all “Textiles, Apparel & Luxury Goods” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Movado Group beats its competitors on 8 of the 15 factors compared.

About Movado Group

Movado Group, Inc. designs, sources, markets, and distributes watches in the United States and internationally. The company operates in two segments, Watch and Accessory Brands, and Company Stores. The company offers its watches under the Movado, Concord, Ebel, Olivia Burton, and MVMT brands, as well as licensed brands comprising Coach, Tommy Hilfiger, HUGO BOSS, Lacoste, and Calvin Klein. It also designs, sources, markets, and distributes jewelry and other accessories; and provides after-sales and shipping services. The company’s customers include jewelry store chains, department stores, independent regional jewelers, network of independent distributors, online marketplaces, licensors’ retail stores, and third-party e-commerce retailers. It sells directly to consumers through its e-commerce platforms. The company was formerly known as North American Watch Corporation and changed its name to Movado Group, Inc. in 1996. Movado Group, Inc. was founded in 1961 and is headquartered in Paramus, New Jersey.