Reviewing Fossil Group (NASDAQ:FOSL) & Superior Group of Companies (NASDAQ:SGC)

Fossil Group (NASDAQ:FOSL) and Superior Group of Companies (NASDAQ:SGC) are both small-cap consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, risk, analyst recommendations, earnings and dividends.

Analyst Recommendations

This is a breakdown of recent recommendations for Fossil Group and Superior Group of Companies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fossil Group	1	1	2	0	2.25
Superior Group of Companies	0	1	1	0	2.50

Fossil Group presently has a consensus target price of $7.50, suggesting a potential upside of 45.63%. Superior Group of Companies has a consensus target price of $18.00, suggesting a potential upside of 41.40%. Given Fossil Group’s higher possible upside, equities research analysts plainly believe Fossil Group is more favorable than Superior Group of Companies.

Profitability

This table compares Fossil Group and Superior Group of Companies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fossil Group	-7.09%	-59.76%	-7.53%
Superior Group of Companies	1.44%	5.29%	2.47%

Risk & Volatility

Fossil Group has a beta of 1.61, meaning that its share price is 61% more volatile than the S&P 500. Comparatively, Superior Group of Companies has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500.

Insider & Institutional Ownership

61.1% of Fossil Group shares are held by institutional investors. Comparatively, 33.8% of Superior Group of Companies shares are held by institutional investors. 3.8% of Fossil Group shares are held by company insiders. Comparatively, 29.1% of Superior Group of Companies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Fossil Group and Superior Group of Companies”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fossil Group	$1.00 billion	0.30	-$78.30 million	($1.28)	-4.02
Superior Group of Companies	$566.18 million	0.36	$7.00 million	$0.55	23.15

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

Summary

Superior Group of Companies beats Fossil Group on 9 of the 14 factors compared between the two stocks.

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.

About Superior Group of Companies

Superior Group of Companies, Inc. manufactures and sells apparel and accessories in the United States and internationally. It operates through three segments: Branded Products, Healthcare Apparel, and Contact Centers. The Branded Products segment produces and sells customized merchandising solutions, promotional products, and branded uniform to chain retailer, food service, entertainment, technology, transportation, and other industries under BAMKO and HPI brands. The Healthcare Apparel segment manufactures and sells healthcare apparel, such as scrubs, lab coats, protective apparel, and patient gowns under the Fashion Seal Healthcare, CID Resources and Wink, and Carhartt brand names. This segment sells healthcare service apparel to healthcare laundries, dealers, distributors, and physical and e-commerce retailers. The Contact Centers segment offers outsourced, nearshore business process outsourcing, and contact and call-center support services. The company was formerly known as Superior Uniform Group, Inc. and changed its name to Superior Group of Companies, Inc. in May 2018. Superior Group of Companies, Inc. was founded in 1920 and is headquartered in St. Petersburg, Florida.