The Swatch Group (OTCMKTS:SWGNF) vs. Crocs (NASDAQ:CROX) Financial Analysis

Crocs (NASDAQ:CROX) and The Swatch Group (OTCMKTS:SWGNF) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, profitability and earnings.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Crocs and The Swatch Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Crocs	2	7	10	1	2.50
The Swatch Group	0	0	0	0	0.00

Crocs presently has a consensus target price of $139.10, suggesting a potential upside of 16.93%. Given Crocs’ stronger consensus rating and higher possible upside, analysts plainly believe Crocs is more favorable than The Swatch Group.

Valuation & Earnings

This table compares Crocs and The Swatch Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Crocs	$4.04 billion	1.41	-$81.20 million	$11.57	10.28
The Swatch Group	N/A	N/A	N/A	$6.69	6.66

The Swatch Group has lower revenue, but higher earnings than Crocs. The Swatch Group is trading at a lower price-to-earnings ratio than Crocs, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Crocs and The Swatch Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Crocs	14.64%	47.75%	15.20%
The Swatch Group	N/A	N/A	N/A

Insider and Institutional Ownership

93.4% of Crocs shares are owned by institutional investors. Comparatively, 5.1% of The Swatch Group shares are owned by institutional investors. 3.1% of Crocs shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Crocs beats The Swatch Group on 12 of the 12 factors compared between the two stocks.

About Crocs

Crocs, Inc., together with its subsidiaries, designs, develops, manufactures, markets, distributes, and sells casual lifestyle footwear and accessories for men, women, and children under Crocs and HEYDUDE Brand in the United States and internationally. The company offers various footwear products, including clogs, sandals, slides, flips, wedges, platforms, socks, boots, charms, flip flops, sneakers, and slippers. It sells its products through wholesalers, retail stores, e-commerce sites, third-party marketplaces, and kiosks/store-in-store locations. Crocs, Inc. was founded in 1999 and is headquartered in Broomfield, Colorado.

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.