Adidas (OTCMKTS:ADDYY – Get Free Report) and Fossil Group (NASDAQ:FOSL – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, risk, earnings, institutional ownership, analyst recommendations, profitability and dividends.
Institutional and Insider Ownership
61.1% of Fossil Group shares are owned by institutional investors. 3.8% of Fossil Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of current recommendations and price targets for Adidas and Fossil Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Adidas | 1 | 3 | 10 | 0 | 2.64 |
| Fossil Group | 1 | 1 | 2 | 1 | 2.60 |
Volatility and Risk
Adidas has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500. Comparatively, Fossil Group has a beta of 1.61, suggesting that its stock price is 61% more volatile than the S&P 500.
Earnings and Valuation
This table compares Adidas and Fossil Group”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Adidas | $28.06 billion | 1.06 | $1.52 billion | $4.54 | 18.29 |
| Fossil Group | $1.00 billion | 0.29 | -$78.30 million | ($1.28) | -3.88 |
Adidas has higher revenue and earnings than Fossil Group. Fossil Group is trading at a lower price-to-earnings ratio than Adidas, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Adidas and Fossil Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Adidas | 5.30% | 22.35% | 6.80% |
| Fossil Group | -7.09% | -59.76% | -7.53% |
Summary
Adidas beats Fossil Group on 10 of the 15 factors compared between the two stocks.
About Adidas
adidas AG, together with its subsidiaries, designs, develops, produces, and markets athletic and sports lifestyle products in Europe, the Middle East, Africa, North America, Greater China, the Asia-Pacific, and Latin America. It offers footwear, apparel, and accessories and gear, such as bags and balls under the adidas brand; golf footwear and apparel under the adidas Golf brand; and outdoor footwear under the Five Ten brand. It sells its products through its own retail stores; mono-branded franchise stores and shop-in-shops; and wholesale and its e-commerce channels. The company was formerly known as adidas-Salomon AG and changed its name to adidas AG in June 2006. adidas AG was founded in 1920 and is headquartered in Herzogenaurach, Germany.
About Fossil Group
Fossil Group, Inc., together with its subsidiaries, designs, develops, markets, and distributes consumer fashion accessories in the United States, Europe, Asia, and internationally. The company’s products include traditional watches, smartwatches, jewelry, handbags, small leather goods, belts, and sunglasses. It also manufactures and distributes private label brands, as well as branded products purchased for resell in other branded retail stores. The company offers its products under its proprietary brands, such as FOSSIL, SKAGEN, MICHELE, RELIC, and ZODIAC; and under the licensed brands, including ARMANI EXCHANGE, DIESEL, DKNY, EMPORIO ARMANI, KATE SPADE NEW YORK, MICHAEL KORS, TORY BURCH, and Skechers. The company sells its products through company-owned retail and outlet stores, department and specialty retail stores, mass market stores, e-commerce sites, licensed and franchised FOSSIL retail stores, and retail concessions, as well as sells its products on airlines. The company was formerly known as Fossil, Inc. and changed its name to Fossil Group, Inc. in May 2013. Fossil Group, Inc. was founded in 1984 and is headquartered in Richardson, Texas.
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