Critical Comparison: Movado Group (MOV) vs. Its Rivals

Movado Group (NYSE:MOV) is one of 118 publicly-traded companies in the “Textiles, Apparel & Luxury Goods” industry, but how does it contrast to its peers? We will compare Movado Group to similar businesses based on the strength of its valuation, analyst recommendations, institutional ownership, profitability, earnings, risk and dividends.

Profitability

This table compares Movado Group and its peers’ 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	-3.34%	13.12%	2.57%

Insider & Institutional Ownership

72.1% of Movado Group shares are owned by institutional investors. Comparatively, 54.9% of shares of all “Textiles, Apparel & Luxury Goods” companies are owned by institutional investors. 30.8% of Movado Group shares are owned by company insiders. Comparatively, 15.3% of shares of all “Textiles, Apparel & Luxury Goods” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Movado Group pays an annual dividend of $1.60 per share and has a dividend yield of 4.5%. 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 22.9% of their earnings in the form of a dividend.

Valuation & Earnings

This table compares Movado Group and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Movado Group	$681.94 million	$26.55 million	25.31
Movado Group Competitors	$5.66 billion	$478.19 million	27.64

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

Risk and Volatility

Movado Group has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500. Comparatively, Movado Group’s peers have a beta of 0.95, suggesting that their average stock price is 5% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Movado Group and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Movado Group	0	1	1	2	3.25
Movado Group Competitors	1587	7618	10194	341	2.47

Movado Group currently has a consensus price target of $40.00, suggesting a potential upside of 12.87%. As a group, “Textiles, Apparel & Luxury Goods” companies have a potential upside of 16.66%. Given Movado Group’s peers higher probable upside, analysts plainly believe Movado Group has less favorable growth aspects than its peers.

Summary

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

Movado Group Company Profile

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.