Financial Survey: Crocs (NASDAQ:CROX) versus The Swatch Group (OTCMKTS:SWGNF)

The Swatch Group (OTCMKTS:SWGNF) and Crocs (NASDAQ:CROX) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, valuation, institutional ownership, risk and dividends.

Institutional & Insider Ownership

5.1% of The Swatch Group shares are held by institutional investors. Comparatively, 93.4% of Crocs shares are held by institutional investors. 3.1% of Crocs shares are held by 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 & Valuation

This table compares The Swatch Group and Crocs”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The Swatch Group	N/A	N/A	N/A	$6.69	6.66
Crocs	$4.05 billion	1.49	-$81.20 million	$11.57	10.87

The Swatch Group has higher earnings, but lower revenue than Crocs. The Swatch Group is trading at a lower price-to-earnings ratio than Crocs, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations and price targets for The Swatch Group and Crocs, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The Swatch Group	0	0	0	0	0.00
Crocs	2	7	10	1	2.50

Crocs has a consensus target price of $139.10, suggesting a potential upside of 10.55%. Given Crocs’ stronger consensus rating and higher probable upside, analysts clearly believe Crocs is more favorable than The Swatch Group.

Profitability

This table compares The Swatch Group and Crocs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
The Swatch Group	N/A	N/A	N/A
Crocs	14.64%	47.75%	15.20%

Summary

Crocs beats The Swatch Group on 12 of the 12 factors compared between the two stocks.

About The Swatch Group

The Swatch Group AG designs, manufactures, and sells finished watches, jewelry, and watch movements and components worldwide. The company operates through Watches & Jewelry and Electronic Systems segments. The Watches & Jewelry segment designs, produces, and commercializes watches and jewelry. The Electronic Systems segment engages in the design, production, and commercialization of electronic components, as well as sports timing activities. It is also involved in the provision of assembly, research and development, administration, polishing, logistics and distribution, and customer services; and hard material products, microelectronics, watch cases and crowns, miniature low-frequency quartz crystals, thin wires, miniature batteries, watch dials, watch hands, bracelets, sports timing technology and equipment, precision parts, and assembly electronic components. In addition, the company engages in retail, communication, real estate, real estate management, finance, reinsurance, and art center businesses. It offers its watch and jewelry products primarily under the Breguet, Harry Winston, Blancpain, Glashütte Original, Jaquet Droz, Léon Hatot, Omega, Longines, Rado, Union Glashütte, Tissot, Balmain, Certina, Mido, Hamilton, Swatch, and Flik Flak brands. The Swatch Group AG was founded in 1983 and is headquartered in Biel/Bienne, Switzerland.

About Crocs

Crocs, Inc., together with its subsidiaries, designs, develops, manufactures, markets, distributes, and sells casual lifestyle footwear and accessories for men, women, and children under Crocs and HEYDUDE Brand in the United States and internationally. The company offers various footwear products, including clogs, sandals, slides, flips, wedges, platforms, socks, boots, charms, flip flops, sneakers, and slippers. It sells its products through wholesalers, retail stores, e-commerce sites, third-party marketplaces, and kiosks/store-in-store locations. Crocs, Inc. was founded in 1999 and is headquartered in Broomfield, Colorado.