Fossil Group (NASDAQ:FOSL – Get Free Report) and Children’s Place (NASDAQ:PLCE – Get Free Report) are both small-cap retail/wholesale companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.
Valuation & Earnings
This table compares Fossil Group and Children’s Place”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Fossil Group | $1.08 billion | 0.15 | -$102.67 million | ($1.11) | -2.81 |
| Children’s Place | $1.34 billion | 0.12 | -$57.82 million | ($0.86) | -8.12 |
Institutional and Insider Ownership
61.1% of Fossil Group shares are owned by institutional investors. 7.8% of Fossil Group shares are owned by company insiders. Comparatively, 0.6% of Children’s Place shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Fossil Group and Children’s Place, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Fossil Group | 0 | 0 | 1 | 0 | 3.00 |
| Children’s Place | 0 | 1 | 0 | 0 | 2.00 |
Fossil Group presently has a consensus target price of $5.00, suggesting a potential upside of 60.26%. Children’s Place has a consensus target price of $7.00, suggesting a potential upside of 0.29%. Given Fossil Group’s stronger consensus rating and higher possible upside, research analysts clearly believe Fossil Group is more favorable than Children’s Place.
Risk & Volatility
Fossil Group has a beta of 2.21, suggesting that its stock price is 121% more volatile than the S&P 500. Comparatively, Children’s Place has a beta of 2.02, suggesting that its stock price is 102% more volatile than the S&P 500.
Profitability
This table compares Fossil Group and Children’s Place’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Fossil Group | -5.49% | -12.07% | -2.27% |
| Children’s Place | -2.04% | -10.32% | -2.45% |
Summary
Fossil Group beats Children’s Place on 9 of the 14 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 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.
About Children’s Place
The Children’s Place, Inc. engages in the provision of apparel, footwear, accessories, and other items for children. The firm also designs contracts to manufacture and sell fashionable and value-priced merchandise under the brand names of The Children’s Place, Baby Place, and Gymboree. It operates through The Children’s Place U.S. and The Children’s Place International segments. The Children’s Place U.S. segment refers to the company’s U.S. and Puerto Rico-based stores and revenue from its U.S. based wholesale business. The Children’s Place International segment is involved in the Canadian-based stores, revenue from the company’s Canadian-based wholesale business, as well as revenue from international franchisees. The company was founded by David Pulver and Clinton A. Clark in 1969 and is headquartered in Secaucus, NJ.
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