Lulu’s Fashion Lounge (NASDAQ:LVLU) vs. Fossil Group (NASDAQ:FOSL) Financial Contrast

Fossil Group (NASDAQ:FOSLGet Free Report) and Lulu’s Fashion Lounge (NASDAQ:LVLUGet Free Report) are both small-cap retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Analyst Ratings

This is a summary of current ratings and recommmendations for Fossil Group and Lulu’s Fashion Lounge, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fossil Group 1 1 2 0 2.25
Lulu’s Fashion Lounge 1 0 0 0 1.00

Fossil Group presently has a consensus price target of $7.00, suggesting a potential upside of 50.54%. Given Fossil Group’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Fossil Group is more favorable than Lulu’s Fashion Lounge.

Profitability

This table compares Fossil Group and Lulu’s Fashion Lounge’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fossil Group -7.81% -46.78% -7.42%
Lulu’s Fashion Lounge -4.86% -308.76% -12.91%

Institutional & Insider Ownership

61.1% of Fossil Group shares are owned by institutional investors. Comparatively, 73.8% of Lulu’s Fashion Lounge shares are owned by institutional investors. 2.9% of Fossil Group shares are owned by company insiders. Comparatively, 6.8% of Lulu’s Fashion Lounge shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Fossil Group has a beta of 1.74, suggesting that its stock price is 74% more volatile than the S&P 500. Comparatively, Lulu’s Fashion Lounge has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500.

Valuation and Earnings

This table compares Fossil Group and Lulu’s Fashion Lounge”s top-line 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 0.27 -$78.30 million ($1.46) -3.18
Lulu’s Fashion Lounge $282.28 million 0.11 -$55.29 million ($4.91) -2.31

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

Summary

Fossil Group beats Lulu’s Fashion Lounge on 9 of the 14 factors compared between the two stocks.

About Fossil Group

(Get Free Report)

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 Lulu’s Fashion Lounge

(Get Free Report)

Lulu’s Fashion Lounge Holdings, Inc. engages in providing an online website for clothing. It offers retailing of women’s clothing, shoes, and accessories. The company was founded in 1996 and is headquartered in Chico, CA.

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