Analyzing Fossil Group (NASDAQ:FOSL) & Destination Maternity (OTCMKTS:DESTQ)

Destination Maternity (OTCMKTS:DESTQ) and Fossil Group (NASDAQ:FOSL) are both retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, valuation, analyst recommendations, institutional ownership, profitability and earnings.

Valuation & Earnings

This table compares Destination Maternity and Fossil Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Destination Maternity	N/A	N/A	N/A	N/A	N/A
Fossil Group	$1.00 billion	0.26	-$78.30 million	($1.14)	-3.85

Destination Maternity has higher earnings, but lower revenue than Fossil Group.

Profitability

This table compares Destination Maternity and Fossil Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Destination Maternity	N/A	N/A	N/A
Fossil Group	-6.19%	-48.51%	-7.06%

Analyst Ratings

This is a breakdown of current recommendations for Destination Maternity and Fossil Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Destination Maternity	0	0	0	0	0.00
Fossil Group	1	1	2	0	2.25

Fossil Group has a consensus target price of $7.00, indicating a potential upside of 59.45%. Given Fossil Group’s stronger consensus rating and higher probable upside, analysts plainly believe Fossil Group is more favorable than Destination Maternity.

Institutional and Insider Ownership

61.1% of Fossil Group shares are held by institutional investors. 0.4% of Destination Maternity shares are held by insiders. Comparatively, 2.9% of Fossil Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Fossil Group beats Destination Maternity on 6 of the 9 factors compared between the two stocks.

About Destination Maternity

Destination Maternity Corp. engages in the design, manufacture and sale of maternity apparel and related accessories. It operates stores under three brands: Motherhood Maternity, A Pea in the Pod, and Destination Maternity. The Motherhood Maternity brand serves maternity apparel business, which is used in special occasion, offering quality merchandise at affordable value. The A Pea in the Pod brand is a contemporary, fashion-forward assortment including a curated selection of exclusive designer labels at premium pricing, offering the mom2be fashionable maternity pieces that reflect her uncompromising sense of style in both casual and career apparel. The Destination Maternity brand relates to a selection of fashion offers all three brands, plus skincare, fitness, and nutritional products to pamper the pregnant woman. The company was founded in 1982 and is headquartered in Moorestown, NJ.

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.