The Swatch Group (SWGNF) and Its Rivals Critical Analysis

Profitability

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

	Net Margins	Return on Equity	Return on Assets
The Swatch Group	N/A	N/A	N/A
The Swatch Group Competitors	-4.08%	19.85%	2.56%

Valuation & Earnings

This table compares The Swatch Group and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
The Swatch Group	N/A	N/A	6.20
The Swatch Group Competitors	$5.78 billion	$471.21 million	27.50

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

Institutional and Insider Ownership

5.1% of The Swatch Group shares are owned by institutional investors. Comparatively, 54.2% of shares of all “Textiles, Apparel & Luxury Goods” companies are owned by institutional investors. 16.3% of shares of all “Textiles, Apparel & Luxury Goods” companies 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

The Swatch Group pays an annual dividend of $1.50 per share and has a dividend yield of 3.6%. The Swatch Group pays out 22.4% of its earnings in the form of a dividend. As a group, “Textiles, Apparel & Luxury Goods” companies pay a dividend yield of 3.1% and pay out 22.8% of their earnings in the form of a dividend. The Swatch Group is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Summary

The Swatch Group rivals beat The Swatch Group on 6 of the 9 factors compared.

The Swatch Group Company Profile

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.