Fossil Group (NASDAQ:FOSL – Get Free Report) and Birkenstock (NYSE:BIRK – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, institutional ownership and valuation.
Insider and Institutional Ownership
61.1% of Fossil Group shares are owned by institutional investors. Comparatively, 19.9% of Birkenstock shares are owned by institutional investors. 2.9% of Fossil Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Risk and Volatility
Fossil Group has a beta of 1.62, indicating that its stock price is 62% more volatile than the S&P 500. Comparatively, Birkenstock has a beta of 1.3, indicating that its stock price is 30% more volatile than the S&P 500.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Fossil Group | -7.09% | -57.29% | -7.45% |
| Birkenstock | 16.26% | 12.95% | 7.15% |
Valuation and Earnings
This table compares Fossil Group and Birkenstock”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Fossil Group | $1.00 billion | 0.32 | -$78.30 million | ($1.14) | -4.75 |
| Birkenstock | $2.32 billion | 3.20 | $385.46 million | $2.21 | 18.23 |
Birkenstock has higher revenue and earnings than Fossil Group. Fossil Group is trading at a lower price-to-earnings ratio than Birkenstock, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Fossil Group and Birkenstock, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Fossil Group | 1 | 1 | 2 | 0 | 2.25 |
| Birkenstock | 1 | 4 | 13 | 0 | 2.67 |
Fossil Group currently has a consensus target price of $7.50, suggesting a potential upside of 38.50%. Birkenstock has a consensus target price of $53.28, suggesting a potential upside of 32.27%. Given Fossil Group’s higher possible upside, equities research analysts plainly believe Fossil Group is more favorable than Birkenstock.
Summary
Birkenstock beats Fossil Group on 10 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 Birkenstock
Birkenstock Holding plc manufactures and sells footwear products. It also offers sandals, shoes, closed-toe silhouettes, skincare products, and accessories. The company sells its products through e-commerce sites and a network of owned retail stores, as well as business-to-business channels. It operates in the United States, Brazil, Canada, Mexico, Europe, APMA, and internationally. Birkenstock Holding plc was founded in 1774 and is based in London, the United Kingdom. Birkenstock Holding plc is a subsidiary of BK LC Lux MidCo S.à r.l.
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