Analyzing Movado Group (NYSE:MOV) & Vince (NASDAQ:VNCE)

Vince (NASDAQ:VNCE) and Movado Group (NYSE:MOV) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, analyst recommendations, risk, institutional ownership and dividends.

Analyst Ratings

This is a summary of current recommendations and price targets for Vince and Movado Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vince	0	1	1	1	3.00
Movado Group	0	1	1	2	3.25

Movado Group has a consensus target price of $40.00, indicating a potential upside of 24.09%. Given Movado Group’s stronger consensus rating and higher probable upside, analysts clearly believe Movado Group is more favorable than Vince.

Volatility & Risk

Vince has a beta of 1.43, indicating that its share price is 43% more volatile than the S&P 500. Comparatively, Movado Group has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500.

Institutional and Insider Ownership

16.1% of Vince shares are owned by institutional investors. Comparatively, 72.1% of Movado Group shares are owned by institutional investors. 56.5% of Vince shares are owned by company insiders. Comparatively, 30.8% of Movado Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Vince and Movado Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vince	2.42%	31.35%	7.17%
Movado Group	6.00%	8.49%	5.78%

Earnings & Valuation

This table compares Vince and Movado Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vince	$300.01 million	0.52	$6.38 million	$0.57	21.35
Movado Group	$671.31 million	1.07	$26.55 million	$1.80	17.91

Movado Group has higher revenue and earnings than Vince. Movado Group is trading at a lower price-to-earnings ratio than Vince, indicating that it is currently the more affordable of the two stocks.

Summary

Movado Group beats Vince on 10 of the 14 factors compared between the two stocks.

About Vince

Vince Holding Corp. designs, merchandises, and sells luxury apparel and accessories in the United States and internationally. It operates through three segments: Vince Wholesale, Vince Direct-to-Consumer, and Rebecca Taylor and Parker. The company offers a range of women’s products, such as cashmere sweaters, silk blouses, leather and suede leggings and jackets, dresses, skirts, denims, pants, t-shirts, footwear, outerwear, and accessories; and men’s products comprising t-shirts, knit and woven tops, sweaters, denims, pants, blazers, footwear, and outerwear under the Vince brand. It also offers occasion-forward dresses, suiting, silk blouses, leather and tweed jackets, outerwear, jumpsuits, cotton dresses and blouses, denim, sweaters, pants, skirts and knit, and woven tops under the Rebecca Taylor and Parker brands. The company sells its products directly to consumers through its branded specialty retail stores and outlet stores, as well as through its vince.com e-commerce platform and subscription business through Vince Unfold, vinceunfold.com; and to wholesale department stores and specialty stores. As of January 30, 2021, it operated 62 Vince stores, including 47 company-operated full-price retail stores and 15 company-operated outlets. The company was formerly known as Apparel Holding Corp. and changed its name to Vince Holding Corp. in November 2013. Vince Holding Corp. was founded in 2002 and is headquartered in New York, New York.

About Movado Group

Movado Group, Inc. designs, sources, markets, and distributes watches in the United States and internationally. The company operates in two segments, Watch and Accessory Brands, and Company Stores. The company offers its watches under the Movado, Concord, Ebel, Olivia Burton, and MVMT brands, as well as licensed brands comprising Coach, Tommy Hilfiger, HUGO BOSS, Lacoste, and Calvin Klein. It also designs, sources, markets, and distributes jewelry and other accessories; and provides after-sales and shipping services. The company’s customers include jewelry store chains, department stores, independent regional jewelers, network of independent distributors, online marketplaces, licensors’ retail stores, and third-party e-commerce retailers. It sells directly to consumers through its e-commerce platforms. The company was formerly known as North American Watch Corporation and changed its name to Movado Group, Inc. in 1996. Movado Group, Inc. was founded in 1961 and is headquartered in Paramus, New Jersey.