Contrasting Movado Group (MOV) & Its Rivals

Movado Group (NYSE:MOV) is one of 118 public companies in the “Textiles, Apparel & Luxury Goods” industry, but how does it compare to its competitors? We will compare Movado Group to related businesses based on the strength of its risk, profitability, valuation, dividends, earnings, analyst recommendations and institutional ownership.

Volatility & Risk

Movado Group has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500. Comparatively, Movado Group’s competitors have a beta of 0.95, suggesting that their average stock price is 5% less volatile than the S&P 500.

Valuation and Earnings

This table compares Movado Group and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Movado Group	$671.31 million	$26.55 million	24.89
Movado Group Competitors	$5.69 billion	$478.19 million	27.81

Movado Group’s competitors have higher revenue and earnings than Movado Group. Movado Group is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Insider & Institutional Ownership

72.1% of Movado Group shares are held by institutional investors. Comparatively, 54.6% of shares of all “Textiles, Apparel & Luxury Goods” companies are held by institutional investors. 30.8% of Movado Group shares are held by insiders. Comparatively, 16.3% of shares of all “Textiles, Apparel & Luxury Goods” companies are held by 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.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Movado Group and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Movado Group	0	1	1	2	3.25
Movado Group Competitors	1588	7623	10202	342	2.47

Movado Group currently has a consensus target price of $40.00, suggesting a potential upside of 14.81%. As a group, “Textiles, Apparel & Luxury Goods” companies have a potential upside of 18.41%. Given Movado Group’s competitors higher probable upside, analysts clearly believe Movado Group has less favorable growth aspects than its competitors.

Dividends

Movado Group pays an annual dividend of $1.60 per share and has a dividend yield of 4.6%. Movado Group pays out 114.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Textiles, Apparel & Luxury Goods” companies pay a dividend yield of 3.2% and pay out 23.0% of their earnings in the form of a dividend.

Profitability

This table compares Movado Group and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Movado Group	4.70%	7.13%	4.81%
Movado Group Competitors	-3.38%	13.20%	2.62%

Summary

Movado Group beats its competitors on 8 of the 15 factors compared.

Movado Group Company Profile

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.