Movado Group (NYSE:MOV – Get Free Report) and Gildan Activewear (NYSE:GIL – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.
Earnings and Valuation
This table compares Movado Group and Gildan Activewear”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Movado Group | $671.31 million | 1.10 | $26.55 million | $1.80 | 18.34 |
| Gildan Activewear | $3.62 billion | 2.40 | $398.88 million | $0.52 | 90.16 |
Institutional and Insider Ownership
72.1% of Movado Group shares are held by institutional investors. Comparatively, 82.8% of Gildan Activewear shares are held by institutional investors. 30.8% of Movado Group shares are held by insiders. Comparatively, 2.0% of Gildan Activewear shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current recommendations for Movado Group and Gildan Activewear, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Movado Group | 0 | 0 | 2 | 2 | 3.50 |
| Gildan Activewear | 0 | 3 | 12 | 0 | 2.80 |
Movado Group currently has a consensus target price of $40.00, suggesting a potential upside of 21.15%. Gildan Activewear has a consensus target price of $80.00, suggesting a potential upside of 70.64%. Given Gildan Activewear’s higher probable upside, analysts clearly believe Gildan Activewear is more favorable than Movado Group.
Profitability
This table compares Movado Group and Gildan Activewear’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Movado Group | 6.00% | 8.49% | 5.78% |
| Gildan Activewear | 1.28% | 21.03% | 7.07% |
Risk & Volatility
Movado Group has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500. Comparatively, Gildan Activewear has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500.
Dividends
Movado Group pays an annual dividend of $1.60 per share and has a dividend yield of 4.8%. Gildan Activewear pays an annual dividend of $1.00 per share and has a dividend yield of 2.1%. Movado Group pays out 88.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Gildan Activewear pays out 192.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Gildan Activewear has raised its dividend for 2 consecutive years. Movado Group is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Gildan Activewear beats Movado Group on 11 of the 18 factors compared between the two stocks.
About Movado Group
Movado Group, Inc. designs, sources, markets, and distributes watches in the United States and internationally. The company operates in two segments, Watch and Accessory Brands, and Company Stores. The company offers its watches under the Movado, Concord, Ebel, Olivia Burton, and MVMT brands, as well as licensed brands comprising Coach, Tommy Hilfiger, HUGO BOSS, Lacoste, and Calvin Klein. It also designs, sources, markets, and distributes jewelry and other accessories; and provides after-sales and shipping services. The company’s customers include jewelry store chains, department stores, independent regional jewelers, network of independent distributors, online marketplaces, licensors’ retail stores, and third-party e-commerce retailers. It sells directly to consumers through its e-commerce platforms. The company was formerly known as North American Watch Corporation and changed its name to Movado Group, Inc. in 1996. Movado Group, Inc. was founded in 1961 and is headquartered in Paramus, New Jersey.
About Gildan Activewear
Gildan Activewear Inc. manufactures and sells various apparel products in the United States, North America, Europe, Asia-Pacific, and Latin America. It provides various activewear products, including T-shirts, fleece tops and bottoms, and sports shirts under the Gildan, Gildan Performance, Gildan Hammer, Glidan Softstyle, Gildan Heavy Cotton, Gildan Ultra Cotton, Gildan DryBlend, Gildan HeavyBlend, Comfort Colors, and American Apparel brands. The company also offers hosiery products comprising athletic; dress; and casual, liner, therapeutic, and workwear socks under the Gildan, Under Armour, GoldToe, Signature Gold by Goldtoe, Peds, MediPeds, All Pro, and GoldTeo Edition TM brands. In addition, it provides men's and boys' underwear products, and ladies panties under the Gildan and Gildan Platinum brands. The company sells its products to wholesale distributors, screen printers, and embellishers, as well as to retailers and lifestyle brand companies. The company was formerly known as Textiles Gildan Inc. and changed its name to Gildan Activewear Inc. in March 1995. Gildan Activewear Inc. was founded in 1946 and is headquartered in Montreal, Canada.
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