G-III Apparel Group (NASDAQ: GIII) and Sequential Brands Group (NASDAQ:SQBG) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, profitability, institutional ownership, dividends, valuation and risk.
Volatility & Risk
G-III Apparel Group has a beta of 0.22, indicating that its stock price is 78% less volatile than the S&P 500. Comparatively, Sequential Brands Group has a beta of -0.3, indicating that its stock price is 130% less volatile than the S&P 500.
99.5% of G-III Apparel Group shares are owned by institutional investors. Comparatively, 45.2% of Sequential Brands Group shares are owned by institutional investors. 9.8% of G-III Apparel Group shares are owned by insiders. Comparatively, 29.8% of Sequential Brands Group shares are owned by 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.
Valuation and Earnings
This table compares G-III Apparel Group and Sequential Brands Group’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|G-III Apparel Group||$2.81 billion||0.71||$62.12 million||$1.60||25.19|
|Sequential Brands Group||$167.46 million||0.79||-$185.71 million||$0.44||4.73|
G-III Apparel Group has higher revenue and earnings than Sequential Brands Group. Sequential Brands Group is trading at a lower price-to-earnings ratio than G-III Apparel Group, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings for G-III Apparel Group and Sequential Brands Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|G-III Apparel Group||1||4||7||0||2.50|
|Sequential Brands Group||0||4||2||0||2.33|
G-III Apparel Group presently has a consensus price target of $37.00, suggesting a potential downside of 8.21%. Sequential Brands Group has a consensus price target of $4.80, suggesting a potential upside of 130.77%. Given Sequential Brands Group’s higher possible upside, analysts plainly believe Sequential Brands Group is more favorable than G-III Apparel Group.
This table compares G-III Apparel Group and Sequential Brands Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|G-III Apparel Group||2.21%||7.44%||3.95%|
|Sequential Brands Group||-112.42%||5.81%||2.05%|
G-III Apparel Group beats Sequential Brands Group on 11 of the 14 factors compared between the two stocks.
G-III Apparel Group Company Profile
G-III Apparel Group, Ltd. designs, manufactures, and markets women's and men's apparel in the United States and internationally. The company operates in two segments, Wholesale Operations and Retail Operations. Its products include outerwear, dresses, sportswear, swimwear, women's suits, and women's performance wear; and women's handbags, footwear, small leather goods, cold weather accessories, and luggage. The company markets apparel and other products under the proprietary brand names, including DKNY, Donna Karan, Andrew Marc, Marc New York, Vilebrequin, G.H. Bass, Black Rivet, Wilsons, Eliza J, Jessica Howard, G-III Sports by Carl Banks, and G-III for Her; and licensed brands, such as Calvin Klein, Tommy Hilfiger, Karl Lagerfeld Paris, Guess?, Kenneth Cole, Cole Haan, Levi's, Vince Camuto, Ivanka Trump, Kensie, and Dockers. It has licenses with the National Football League, Major League Baseball, National Basketball Association, National Hockey League, Touch by Alyssa Milano, Hands High, Collegiate Licensing Company, and Starter, as well as approximately 150 U.S. colleges and universities. The company offers its products to department, specialty, and mass merchant retail stores. As of January 31, 2018, it operated 367 leased retail stores, which included 165 Wilsons Leather stores, 139 G.H. Bass stores, 51 DKNY stores, 8 Karl Lagerfeld Paris stores, and 4 Calvin Klein Performance stores. The company also operates Wilsons Leather, G.H. Bass, and DKNY branded online stores. G-III Apparel Group, Ltd. was founded in 1956 and is based in New York, New York.
Sequential Brands Group Company Profile
Sequential Brands Group, Inc. owns, promotes, markets, and licenses a portfolio of consumer brands in the United States and internationally. It offers products in the apparel, footwear, eyewear, fashion accessories, and home goods categories under the Jessica Simpson, AND1, Avia, GAIAM, Joe's Jeans, Ellen Tracy, Emeril Lagasse, William Rast, Heelys, Revo, Caribbean Joe, DVS, The Franklin Mint, Linens N Things, SPRI, Nevados, and FUL brand names; and food, wine, magazines, books, and other print and digital content categories under the Martha Stewart brand name. The company licenses its brands through various distribution channels to retailers, wholesalers, and distributors. Sequential Brands Group, Inc. was incorporated in 1982 and is headquartered in New York, New York.
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