The Swatch Group (OTCMKTS:SWGNF) & Jerash Holdings (US) (NASDAQ:JRSH) Financial Analysis

Jerash Holdings (US) (NASDAQ:JRSH) and The Swatch Group (OTCMKTS:SWGNF) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, institutional ownership, earnings, valuation and profitability.

Profitability

This table compares Jerash Holdings (US) and The Swatch Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Jerash Holdings (US)	2.13%	5.57%	4.18%
The Swatch Group	N/A	N/A	N/A

Insider and Institutional Ownership

3.4% of Jerash Holdings (US) shares are owned by institutional investors. Comparatively, 5.1% of The Swatch Group shares are owned by institutional investors. 41.0% of Jerash Holdings (US) shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

Jerash Holdings (US) pays an annual dividend of $0.20 per share and has a dividend yield of 4.0%. The Swatch Group pays an annual dividend of $1.50 per share and has a dividend yield of 3.6%. Jerash Holdings (US) pays out 71.4% of its earnings in the form of a dividend. The Swatch Group pays out 22.4% 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.

Analyst Ratings

This is a summary of recent recommendations for Jerash Holdings (US) and The Swatch Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jerash Holdings (US)	0	0	2	0	3.00
The Swatch Group	0	0	0	0	0.00

Jerash Holdings (US) currently has a consensus target price of $5.00, suggesting a potential upside of 0.00%. Given Jerash Holdings (US)’s stronger consensus rating and higher probable upside, equities analysts plainly believe Jerash Holdings (US) is more favorable than The Swatch Group.

Valuation and Earnings

This table compares Jerash Holdings (US) and The Swatch Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jerash Holdings (US)	$166.26 million	0.38	$3.54 million	$0.28	17.86
The Swatch Group	N/A	N/A	N/A	$6.69	6.20

Jerash Holdings (US) has higher revenue and earnings than The Swatch Group. The Swatch Group is trading at a lower price-to-earnings ratio than Jerash Holdings (US), indicating that it is currently the more affordable of the two stocks.

Summary

Jerash Holdings (US) beats The Swatch Group on 10 of the 13 factors compared between the two stocks.

About Jerash Holdings (US)

Jerash Holdings (US), Inc., through its subsidiaries, manufactures and exports customized and ready-made sport and outerwear. The company offers t-shirts; jackets and pullover; pants and shorts; crew neck, polo shirts, and tank tops made from knitted fabric, as well as personal protective equipment. It serves various brand-name retailers in the United States, Hong Kong, Jordan, and internationally. The company was incorporated in 2016 and is headquartered in Fairfield, New Jersey.

About The Swatch Group

The Swatch Group AG designs, manufactures, and sells finished watches, jewelry, and watch movements and components worldwide. The company operates through Watches & Jewelry and Electronic Systems segments. The Watches & Jewelry segment designs, produces, and commercializes watches and jewelry. The Electronic Systems segment engages in the design, production, and commercialization of electronic components, as well as sports timing activities. It is also involved in the provision of assembly, research and development, administration, polishing, logistics and distribution, and customer services; and hard material products, microelectronics, watch cases and crowns, miniature low-frequency quartz crystals, thin wires, miniature batteries, watch dials, watch hands, bracelets, sports timing technology and equipment, precision parts, and assembly electronic components. In addition, the company engages in retail, communication, real estate, real estate management, finance, reinsurance, and art center businesses. It offers its watch and jewelry products primarily under the Breguet, Harry Winston, Blancpain, Glashütte Original, Jaquet Droz, Léon Hatot, Omega, Longines, Rado, Union Glashütte, Tissot, Balmain, Certina, Mido, Hamilton, Swatch, and Flik Flak brands. The Swatch Group AG was founded in 1983 and is headquartered in Biel/Bienne, Switzerland.