Fossil Group (NASDAQ:FOSL – Get Free Report) and Xcel Brands (NASDAQ:XELB – Get Free Report) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, institutional ownership, earnings, risk and valuation.
Profitability
This table compares Fossil Group and Xcel Brands’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Fossil Group | -7.09% | -59.76% | -7.53% |
| Xcel Brands | -343.68% | -109.17% | -42.19% |
Analyst Recommendations
This is a breakdown of current ratings for Fossil Group and Xcel Brands, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Fossil Group | 1 | 1 | 2 | 1 | 2.60 |
| Xcel Brands | 1 | 0 | 1 | 0 | 2.00 |
Institutional & Insider Ownership
61.1% of Fossil Group shares are held by institutional investors. Comparatively, 18.5% of Xcel Brands shares are held by institutional investors. 3.8% of Fossil Group shares are held by company insiders. Comparatively, 29.5% of Xcel Brands shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Volatility and Risk
Fossil Group has a beta of 1.61, meaning that its share price is 61% more volatile than the S&P 500. Comparatively, Xcel Brands has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500.
Valuation & Earnings
This table compares Fossil Group and Xcel Brands”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Fossil Group | $1.00 billion | 0.28 | -$78.30 million | ($1.28) | -3.70 |
| Xcel Brands | $4.94 million | 1.18 | -$17.46 million | ($3.39) | -0.26 |
Xcel Brands has lower revenue, but higher earnings than Fossil Group. Fossil Group is trading at a lower price-to-earnings ratio than Xcel Brands, indicating that it is currently the more affordable of the two stocks.
Summary
Fossil Group beats Xcel Brands on 10 of the 15 factors compared between the two stocks.
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 Xcel Brands
Xcel Brands, Inc., together with its subsidiaries, operates as a media and consumer products company in the United States. The company designs, produces, markets, wholesales, and sells branded apparel, footwear, accessories, jewelry, home goods, and other consumer products; and acquires consumer lifestyle brands, including the Isaac Mizrahi, the LOGO by Lori Goldstein, the Judith Ripka, the Halston brand, the C Wonder, the TowerHill by Christie Brinkley brand (the CB brand), and other brands, as well as manages the Longaberger brand. It licenses its brands to third parties; and designs, produces, markets, and distributes through an omni-channel retail sales strategy, which include distribution through interactive television, digital live-stream shopping, brick-and-mortar retail, and e-commerce channels. The company also offers live streaming, social media and other marketing, and public relations support for its brands. In addition, it markets its brands through www.isaacmizrahi.com; www.halston.com; www.judithripka.com; www.cwonder.com; www.lorigoldstein.com; and www.longaberger.com. Xcel Brands, Inc. was founded in 2011 and is headquartered in New York, New York.
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