Movado Group (NYSE: MOV) and Tuniu Corporation (NASDAQ:TOUR) are both small-cap retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, profitabiliy, analyst recommendations, institutional ownership and valuation.

Earnings and Valuation

This table compares Movado Group and Tuniu Corporation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Movado Group $537.95 million 0.95 $59.24 million $1.18 18.90
Tuniu Corporation $1.29 billion 0.59 -$307.75 million ($2.53) -3.25

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

Insider & Institutional Ownership

64.7% of Movado Group shares are held by institutional investors. 33.0% of Movado Group shares are held by insiders. Comparatively, 76.1% of Tuniu Corporation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Movado Group pays an annual dividend of $0.52 per share and has a dividend yield of 2.3%. Tuniu Corporation does not pay a dividend. Movado Group pays out 44.1% of its earnings in the form of a dividend. Movado Group has raised its dividend for 5 consecutive years.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Movado Group and Tuniu Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Movado Group 0 1 1 0 2.50
Tuniu Corporation 0 0 2 0 3.00

Movado Group currently has a consensus price target of $29.50, suggesting a potential upside of 32.29%. Tuniu Corporation has a consensus price target of $11.60, suggesting a potential upside of 41.29%. Given Tuniu Corporation’s stronger consensus rating and higher possible upside, analysts plainly believe Tuniu Corporation is more favorable than Movado Group.

Volatility & Risk

Movado Group has a beta of 0.3, meaning that its share price is 70% less volatile than the S&P 500. Comparatively, Tuniu Corporation has a beta of 1.34, meaning that its share price is 34% more volatile than the S&P 500.

Profitability

This table compares Movado Group and Tuniu Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Movado Group 5.13% 7.04% 5.42%
Tuniu Corporation -24.17% -42.30% -21.47%

Summary

Movado Group beats Tuniu Corporation on 9 of the 16 factors compared between the two stocks.

About Movado Group

Movado Group, Inc. designs, sources, markets and distributes watches. The Company operates through two segments: Wholesale and Retail. The Wholesale segment includes the design, development, sourcing, marketing and distribution of watches, and after-sales service activities and shipping. It sells all of its brands to jewelry store chains and department stores, as well as independent jewelers. The Retail segment includes its outlet stores. As of January 31, 2017, its subsidiary, Movado Retail Group, Inc., operated 40 outlet stores located in outlet centers across the United States. It divides its business into two geographic locations: the United States operations and International operations. It has international operations in Europe, the Americas, the Middle East and Asia. Its portfolio of brands includes Coach Watches, Concord, Ebel, ESQ Movado, Scuderia Ferrari Watches, HUGO BOSS Watches, Juicy Couture Watches, Lacoste Watches, Movado and Tommy Hilfiger Watches.

About Tuniu Corporation

Tuniu Corporation is an online leisure travel company. The Company offers a selection of packaged tours, including organized tours and self-guided tours, as well as travel-related services for leisure travelers. Its online platform, which consists of its tuniu.com Website and mobile platform, provides product and travel information to enable leisure travelers to plan their travels. Its organized tours offer pre-arranged itineraries, transportation, accommodations, entertainment, meals and tour guide services. Its self-guided tours consist of combinations of flights and hotel bookings and other optional add-ons, such as airport pick-ups. Its other travel-related services include sales of tourist attraction tickets, visa processing services, financial services, hotel booking services and air ticketing services. Its online platform contains travel guides featuring photos, information and recommendations for all destinations it covers.

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