Centric Brands (OTCMKTS:CTRCQ) and G-III Apparel Group (NASDAQ:GIII) are both small-cap retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Centric Brands and G-III Apparel Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Centric Brands 0 0 0 0 N/A
G-III Apparel Group 0 7 4 0 2.36

G-III Apparel Group has a consensus target price of $18.64, suggesting a potential upside of 88.44%. Given G-III Apparel Group’s higher probable upside, analysts plainly believe G-III Apparel Group is more favorable than Centric Brands.

Insider & Institutional Ownership

54.5% of Centric Brands shares are held by institutional investors. Comparatively, 96.0% of G-III Apparel Group shares are held by institutional investors. 30.1% of Centric Brands shares are held by company insiders. Comparatively, 9.5% of G-III Apparel Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Centric Brands and G-III Apparel Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Centric Brands $596.60 million 0.00 -$123.77 million N/A N/A
G-III Apparel Group $3.16 billion 0.15 $143.84 million $3.19 3.10

G-III Apparel Group has higher revenue and earnings than Centric Brands.

Risk and Volatility

Centric Brands has a beta of -0.29, suggesting that its share price is 129% less volatile than the S&P 500. Comparatively, G-III Apparel Group has a beta of 2.59, suggesting that its share price is 159% more volatile than the S&P 500.

Profitability

This table compares Centric Brands and G-III Apparel Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Centric Brands N/A N/A N/A
G-III Apparel Group 3.15% 8.68% 3.92%

Summary

G-III Apparel Group beats Centric Brands on 10 of the 11 factors compared between the two stocks.

About Centric Brands

Centric Brands Inc. designs, produces, merchandises, manages, markets, and distributes kid's wear, and women's and men's accessories and apparel in North America and international markets. The company also licenses approximately 100 brands across its core product categories, including kid's, women's, and men's accessories and apparel. Its owned brands include Hudson, a designer and marketer of women's and men's branded denim and apparel; Robert Graham, an eclectic apparel and accessories brand; and SWIMS, a Scandinavian lifestyle brand for a range of footwear, apparel, and accessories. The company sells its products through its owned retail stores, e-commerce Websites, retail partners' Websites, and partner shop-in-shops, as well as to department, specialty, and mass merchant retail stores. It operates retail stores for its Robert Graham and SWIMS brands. As of May 15, 2019, the company operated 31 Robert Graham brand stores, which consisted of 19 full price stores and 12 outlet stores; and 3 SWIMS brand outlet stores, which consisted of 1 full price store and 2 outlet stores. The company was formerly known as Differential Brands Group Inc. and changed its name to Centric Brands Inc. in October 2018. Centric Brands Inc. was founded in 1987 and is based in New York, New York. On May 18, 2020, Centric Brands Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York.

About G-III Apparel Group

G-III Apparel Group, Ltd. designs, sources, and markets women's and men's apparel in the United States and internationally. The company operates in two segments, Wholesale Operations and Retail Operations. Its products include outerwear, dresses, sportswear, swimwear, women's suits, and women's performance wear; and women's handbags, footwear, small leather goods, cold weather accessories, and luggage. The company markets apparel and other products under the proprietary brand names, including DKNY, Donna Karan, Vilebrequin, G.H. Bass, Andrew Marc, Marc New York, Black Rivet, Wilsons, Eliza J, Jessica Howard, G-III Sports by Carl Banks, and G-III for Her; and licensed brands, such as Calvin Klein, Tommy Hilfiger, Karl Lagerfeld Paris, Guess?, Kenneth Cole, Cole Haan, Levi's, Vince Camuto, Kensie, and Dockers. It has licenses with the National Football League, Major League Baseball, National Basketball Association, National Hockey League, Touch by Alyssa Milano, Hands High, Collegiate Licensing Company, Starter, and Alliance of American Football, as well as approximately 150 U.S. colleges and universities. The company offers its products to department, specialty, and mass merchant retail stores. As of January 31, 2019, it operated 308 leased retail stores, which included 139 Wilsons Leather stores, 111 G.H. Bass stores, 42 DKNY stores, 11 Karl Lagerfeld Paris stores, and 5 Calvin Klein Performance stores. The company also operates Wilsons Leather, G.H. Bass, DKNY, and Karl Lagerfeld Paris branded online stores. G-III Apparel Group, Ltd. was founded in 1956 and is based in New York, New York.

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