Critical Comparison: Movado Group (MOV) versus Its Rivals

Movado Group (NYSE:MOV) is one of 116 publicly-traded companies in the “Textiles, Apparel & Luxury Goods” industry, but how does it compare to its competitors? We will compare Movado Group to related companies based on the strength of its profitability, earnings, analyst recommendations, institutional ownership, valuation, risk and dividends.

Volatility and Risk

Movado Group has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500. Comparatively, Movado Group’s competitors have a beta of 1.02, indicating that their average share price is 2% more volatile than the S&P 500.

Dividends

Movado Group pays an annual dividend of $1.60 per share and has a dividend yield of 4.2%. 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 22.8% of their earnings in the form of a dividend.

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	27.29
Movado Group Competitors	$5.78 billion	$471.25 million	24.96

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

Analyst Ratings

This is a summary of current recommendations 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	1523	7473	10008	333	2.47

Movado Group presently has a consensus target price of $40.00, suggesting a potential upside of 4.70%. As a group, “Textiles, Apparel & Luxury Goods” companies have a potential upside of 9.81%. Given Movado Group’s competitors higher possible upside, analysts plainly believe Movado Group has less favorable growth aspects than its competitors.

Insider & Institutional Ownership

72.1% of Movado Group shares are held by institutional investors. Comparatively, 54.2% 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 hedge funds, large money managers and endowments believe a company is poised for long-term growth.

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	-4.18%	19.64%	2.49%

Summary

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

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.