Canada Goose (NYSE:GOOS – Get Free Report) and Fossil Group (NASDAQ:FOSL – Get Free Report) are both small-cap retail/wholesale companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.
Institutional and Insider Ownership
83.6% of Canada Goose shares are held by institutional investors. Comparatively, 61.1% of Fossil Group shares are held by institutional investors. 0.5% of Canada Goose shares are held by company insiders. Comparatively, 7.8% of Fossil Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Analyst Ratings
This is a summary of current ratings and recommmendations for Canada Goose and Fossil Group, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Canada Goose | 1 | 4 | 1 | 0 | 2.00 |
Fossil Group | 0 | 0 | 1 | 0 | 3.00 |
Earnings and Valuation
This table compares Canada Goose and Fossil Group”s top-line revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Canada Goose | $969.08 million | 1.13 | $68.13 million | $0.34 | 33.28 |
Fossil Group | $1.15 billion | 0.08 | -$102.67 million | ($1.80) | -0.96 |
Canada Goose has higher earnings, but lower revenue than Fossil Group. Fossil Group is trading at a lower price-to-earnings ratio than Canada Goose, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Canada Goose and Fossil Group’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Canada Goose | 3.48% | 19.85% | 5.79% |
Fossil Group | -8.55% | -23.80% | -4.76% |
Volatility & Risk
Canada Goose has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500. Comparatively, Fossil Group has a beta of 2.53, meaning that its share price is 153% more volatile than the S&P 500.
Summary
Canada Goose beats Fossil Group on 8 of the 13 factors compared between the two stocks.
About Canada Goose
Canada Goose Holdings Inc., together with its subsidiaries, designs, manufactures, and sells performance luxury apparel for men, women, youth, children, and babies in Canada, the United States, Asia Pacific, Europe, the Middle East, and Africa. The company operates through three segments: Direct-to-Consumer, Wholesale, and Other. It offers parkas, lightweight down jackets, rainwear, windwear, apparel, fleece, footwear, and accessories for fall, winter, and spring seasons. The company operates through national e-commerce markets and directly operated retail stores. Canada Goose Holdings Inc. was founded in 1957 and is headquartered in Toronto, Canada.
About Fossil Group
Fossil Group, Inc., together with its subsidiaries, designs, develops, markets, and distributes consumer fashion accessories in the United States, Europe, Asia, and internationally. The company’s products include traditional watches, smartwatches, jewelry, handbags, small leather goods, belts, and sunglasses. It also manufactures and distributes private label brands, as well as branded products purchased for resell in other branded retail stores. The company offers its products under its proprietary brands, such as FOSSIL, SKAGEN, MICHELE, RELIC, and ZODIAC; and under the licensed brands, including ARMANI EXCHANGE, DIESEL, DKNY, EMPORIO ARMANI, KATE SPADE NEW YORK, MICHAEL KORS, TORY BURCH, and Skechers. The company sells its products through company-owned retail and outlet stores, department and specialty retail stores, mass market stores, e-commerce sites, licensed and franchised FOSSIL retail stores, and retail concessions, as well as sells its products on airlines. The company was formerly known as Fossil, Inc. and changed its name to Fossil Group, Inc. in May 2013. Fossil Group, Inc. was founded in 1984 and is headquartered in Richardson, Texas.
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