Head-To-Head Analysis: Fossil Group (NASDAQ:FOSL) & Superior Group of Companies (NASDAQ:SGC)

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Superior Group of Companies	$566.18 million	0.34	$7.00 million	$0.55	22.15
Fossil Group	$985.17 million	0.32	-$78.30 million	($1.28)	-4.18

Superior Group of Companies has higher earnings, but lower revenue 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.

Profitability

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

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

Analyst Ratings

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

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

Superior Group of Companies currently has a consensus price target of $18.00, suggesting a potential upside of 47.78%. Fossil Group has a consensus price target of $7.50, suggesting a potential upside of 40.19%. Given Superior Group of Companies’ stronger consensus rating and higher probable upside, analysts plainly believe Superior Group of Companies is more favorable than Fossil Group.

Volatility and Risk

Superior Group of Companies has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500. Comparatively, Fossil Group has a beta of 1.62, meaning that its share price is 62% more volatile than the S&P 500.

Institutional and Insider Ownership

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

Summary

Superior Group of Companies beats Fossil Group on 10 of the 14 factors compared between the two stocks.

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.

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.