Financial Analysis: Oxford Industries (NYSE:OXM) vs. Hugo Boss (OTCMKTS:BOSSY)

Hugo Boss (OTCMKTS:BOSSY) and Oxford Industries (NYSE:OXM) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Hugo Boss and Oxford Industries, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hugo Boss	0	2	0	0	2.00
Oxford Industries	1	6	0	0	1.86

Oxford Industries has a consensus target price of $36.50, suggesting a potential upside of 6.43%. Given Oxford Industries’ higher probable upside, analysts clearly believe Oxford Industries is more favorable than Hugo Boss.

Institutional and Insider Ownership

91.2% of Oxford Industries shares are owned by institutional investors. 6.0% of Oxford Industries shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Hugo Boss and Oxford Industries”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hugo Boss	$4.83 billion	0.63	$281.65 million	$0.83	10.69
Oxford Industries	$1.52 billion	0.34	$92.97 million	($0.33)	-103.93

Hugo Boss has higher revenue and earnings than Oxford Industries. Oxford Industries is trading at a lower price-to-earnings ratio than Hugo Boss, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Hugo Boss has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500. Comparatively, Oxford Industries has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500.

Dividends

Hugo Boss pays an annual dividend of $0.21 per share and has a dividend yield of 2.4%. Oxford Industries pays an annual dividend of $2.76 per share and has a dividend yield of 8.0%. Hugo Boss pays out 25.3% of its earnings in the form of a dividend. Oxford Industries pays out -836.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Oxford Industries has raised its dividend for 5 consecutive years. Oxford Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Hugo Boss and Oxford Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hugo Boss	5.92%	17.88%	7.09%
Oxford Industries	-0.20%	9.35%	4.18%

Summary

Hugo Boss beats Oxford Industries on 9 of the 16 factors compared between the two stocks.

About Hugo Boss

Hugo Boss AG, together with its subsidiaries, provides apparels, shoes, and accessories for men and women worldwide. It also offers licensed products comprising of fragrances, eyewear, watches, children’s fashion, equestrian, and cycling. The company markets and sells its products under the BOSS and HUGO brand names through freestanding stores, shop-in-shops, factory outlets, multi-brand stores, and franchise business, as well as online retailers, distribution, and stores. Hugo Boss AG was founded in 1924 and is headquartered in Metzingen, Germany.

About Oxford Industries

Oxford Industries, Inc., an apparel company, designs, sources, markets, and distributes products of lifestyle and other brands worldwide. The company offers men's and women's sportswear and related products under the Tommy Bahama brand; and women's and girl's dresses and sportswear, scarves, bags, jewelry, and belts, as well as children's apparel, swim, footwear, and licensed products under the Lilly Pulitzer brand. In addition, the company licenses Tommy Bahama brand for various products, such as indoor and outdoor furniture, beach chairs, bedding and bath linens, fabrics, leather goods and gifts, headwear, hosiery, sleepwear, shampoo, toiletries, fragrances, cigar accessories, distilled spirits, and other products; and Lilly Pulitzer for stationery and gift products, home furnishing products, and eyewear. The company distribute its products through southerntide.com, thebeaufortbonnetcompany.com, and duckhead.com; and specialty retailers. It offers products through its retail stores, department stores, specialty stores, multi-branded e-commerce retailers, off-price retailers, and other retailers, as well as e-commerce sites. The company operates brand-specific full-price retail stores; Tommy Bahama food and beverage locations; and Tommy Bahama outlet stores. Oxford Industries, Inc. was founded in 1942 and is headquartered in Atlanta, Georgia.