Citizen Watch (OTCMKTS:CHCLY) & Lakeland Industries (NASDAQ:LAKE) Critical Survey

Lakeland Industries (NASDAQ:LAKE) and Citizen Watch (OTCMKTS:CHCLY) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, valuation and institutional ownership.

Profitability

This table compares Lakeland Industries and Citizen Watch’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lakeland Industries	-10.87%	-6.64%	-4.13%
Citizen Watch	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current ratings and target prices for Lakeland Industries and Citizen Watch, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lakeland Industries	1	1	3	0	2.40
Citizen Watch	0	0	0	0	0.00

Lakeland Industries currently has a consensus price target of $16.00, suggesting a potential upside of 37.94%. Given Lakeland Industries’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Lakeland Industries is more favorable than Citizen Watch.

Institutional and Insider Ownership

71.7% of Lakeland Industries shares are held by institutional investors. 3.4% of Lakeland Industries shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Lakeland Industries and Citizen Watch”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lakeland Industries	$193.32 million	0.59	-$25.31 million	($2.13)	-5.45
Citizen Watch	N/A	N/A	N/A	$319.05	0.21

Citizen Watch has lower revenue, but higher earnings than Lakeland Industries. Lakeland Industries is trading at a lower price-to-earnings ratio than Citizen Watch, indicating that it is currently the more affordable of the two stocks.

Dividends

Lakeland Industries pays an annual dividend of $0.09 per share and has a dividend yield of 0.8%. Citizen Watch pays an annual dividend of $77.08 per share and has a dividend yield of 115.2%. Lakeland Industries pays out -4.2% of its earnings in the form of a dividend. Citizen Watch pays out 24.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Lakeland Industries has increased its dividend for 1 consecutive years.

Summary

Lakeland Industries beats Citizen Watch on 8 of the 14 factors compared between the two stocks.

About Lakeland Industries

Lakeland Industries, Inc. manufactures and sells industrial protective clothing and accessories for the industrial and public protective clothing market worldwide. It offers firefighting and heat protective apparel to protect against fire; high-end chemical protective suits to provide protection from highly concentrated, toxic and/or lethal chemicals, and biological toxins; and limited use/disposable protective clothing, such as coveralls, laboratory coats, shirts, pants, hoods, aprons, sleeves, arm guards, caps, and smocks. The company provides durable woven garments, including electrostatic dissipative apparel used in electronics clean rooms; flame resistant meta aramid, para aramid, and FR cotton coveralls/pants/jackets used in petrochemical, refining operations, and electrical utilities; FR fabrics; and cotton and polycotton coveralls, lab coats, pants, and shirts. In addition, it provides high visibility clothing comprising reflective apparel, including vests, T-shirts, sweatshirts, jackets, coats, raingear, jumpsuits, hats, and gloves; and gloves and sleeves that are used in the automotive, glass, and metal fabrication industries. The company sells its products to a network of safety and industrial supply distributors through in-house sales teams, customer service group, and independent sales representatives. It serves end users, such as integrated oil, chemical/petrochemical, automobile, steel, glass, construction, smelting, cleanroom, janitorial, pharmaceutical, and high technology electronics manufacturers, as well as scientific, medical laboratories, and the utilities industry; and federal, state, and local governmental agencies and departments. Lakeland Industries, Inc. was incorporated in 1982 and is headquartered in Huntsville, Alabama.

About Citizen Watch

Citizen Watch Co., Ltd. manufactures and sells watches and their components worldwide. It operates through four segments: Watches, Machine Tools, Devices and Components, and Electronic and Other Products. The company offers movements, CNC automatic lathes, turning machines, LEDs for lighting, tactile switch, backlight unit, crystal devices, ferroelectric LCDS, printers, calculators, health care products, and other automotive components. Citizen Watch Co., Ltd. was founded in 1918 and is headquartered in Nishitokyo, Japan.