Movado Group (NYSE:MOV) vs. Luk Fook (OTCMKTS:LKFLF) Head-To-Head Contrast

Luk Fook (OTCMKTS:LKFLF) and Movado Group (NYSE:MOV) are both small-cap retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, valuation, profitability, dividends and earnings.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Luk Fook and Movado Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Luk Fook	0	1	0	0	2.00
Movado Group	0	0	1	0	3.00

Movado Group has a consensus price target of $31.50, indicating a potential upside of 91.14%. Given Movado Group’s stronger consensus rating and higher possible upside, analysts clearly believe Movado Group is more favorable than Luk Fook.

Risk & Volatility

Luk Fook has a beta of -0.34, suggesting that its stock price is 134% less volatile than the S&P 500. Comparatively, Movado Group has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500.

Profitability

This table compares Luk Fook and Movado Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Luk Fook	N/A	N/A	N/A
Movado Group	2.78%	5.10%	3.39%

Valuation and Earnings

This table compares Luk Fook and Movado Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Luk Fook	$1.53 billion	0.87	$163.93 million	N/A	N/A
Movado Group	$653.38 million	0.56	$18.36 million	$0.80	20.60

Luk Fook has higher revenue and earnings than Movado Group.

Institutional & Insider Ownership

72.1% of Movado Group shares are owned by institutional investors. 30.8% of Movado Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Movado Group beats Luk Fook on 9 of the 12 factors compared between the two stocks.

About Luk Fook

Luk Fook Holdings (International) Limited, an investment holding company, engages in sourcing, designing, wholesaling, trademark licensing, and retailing various gold and platinum jewelry, and gem-set jewelry products. It offers ring and pair rings, necklaces, pendants, earrings, bangles and bracelets, charms, figurines, accessories, and other products of various materials comprising diamond, gold, platinum, jadeite, gemstone, pearl, and silver materials. The company also provides authentication of gemstones; gold bullion trading services; and software development and services related to internet. In addition, it wholesales polished diamonds; offers trademark licensing, brand building, promotion, and quality examination services, as well as diamond subcontracting handling and diamonds custom export services; and engages in electronic retailing of gold and jewelry products. The company was founded in 1991 and is headquartered in Sha Tin, Hong Kong.

About Movado Group

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.