Fossil Group (NASDAQ:FOSL – Get Free Report) and Citi Trends (NASDAQ:CTRN – Get Free Report) are both small-cap retail/wholesale companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, dividends and risk.
Volatility and Risk
Fossil Group has a beta of 1.61, indicating that its stock price is 61% more volatile than the S&P 500. Comparatively, Citi Trends has a beta of 2.16, indicating that its stock price is 116% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and target prices for Fossil Group and Citi Trends, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Fossil Group | 1 | 0 | 1 | 0 | 2.00 |
| Citi Trends | 1 | 0 | 2 | 0 | 2.33 |
Earnings and Valuation
This table compares Fossil Group and Citi Trends”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Fossil Group | $1.15 billion | 0.18 | -$102.67 million | ($1.27) | -2.96 |
| Citi Trends | $800.74 million | 0.43 | -$43.17 million | ($2.00) | -20.78 |
Citi Trends has lower revenue, but higher earnings than Fossil Group. Citi Trends is trading at a lower price-to-earnings ratio than Fossil Group, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
61.1% of Fossil Group shares are owned by institutional investors. 2.9% of Fossil Group shares are owned by company insiders. Comparatively, 10.7% of Citi Trends shares 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.
Profitability
This table compares Fossil Group and Citi Trends’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Fossil Group | -6.32% | -18.08% | -3.11% |
| Citi Trends | -2.05% | -22.84% | -5.55% |
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.
About Citi Trends
Citi Trends, Inc. operates as a value retailer of fashion apparel, accessories, and home goods. The company offers apparel, such as fashion sportswear and footwear for men and ladies, as well as apparel for kids, including newborns, infants, toddlers, boys, and girls; sleepwear, lingerie, and scrubs for ladies; and kids uniforms and accessories. It also provides accessories and beauty products that include handbags, luggage, hats, belts, sunglasses, jewelry, and watches, as well as offers outerwear for men and women. In addition, the company offers home and lifestyle products comprising home products for the bedroom, bathroom, kitchen, and decorative accessories; and food, tech, team sports, health and products, as well as seasonal items, books, and toys. Citi Trends, Inc. provides its products primarily to African American and multicultural families in the United States. The company was formerly known as Allied Fashion, Inc. and changed its name to Citi Trends, Inc. in 2001. Citi Trends, Inc. was founded in 1946 and is headquartered in Savannah, Georgia.
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