Financial Comparison: TOD’S (OTCMKTS:TODGF) vs. Fossil Group (NASDAQ:FOSL)

TOD’S (OTCMKTS:TODGF) and Fossil Group (NASDAQ:FOSL) are both consumer cyclical companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, earnings, institutional ownership and dividends.

Profitability

This table compares TOD’S and Fossil Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TOD’S	N/A	N/A	N/A
Fossil Group	-11.90%	-45.04%	-11.44%

Valuation & Earnings

This table compares TOD’S and Fossil Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TOD’S	N/A	N/A	N/A	$2.91	12.92
Fossil Group	$1.41 billion	0.04	-$157.09 million	($2.67)	-0.39

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for TOD’S and Fossil Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TOD’S	0	0	0	0	N/A
Fossil Group	0	0	0	0	N/A

Institutional & Insider Ownership

16.1% of TOD’S shares are owned by institutional investors. Comparatively, 61.1% of Fossil Group shares are owned by institutional investors. 7.8% of Fossil Group 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.

Summary

TOD’S beats Fossil Group on 5 of the 8 factors compared between the two stocks.

About TOD’S

TOD'S S.p.A., together with its subsidiaries, creates, produces, and distributes shoes, leather goods and accessories, and apparel in Italy, rest of Europe, the Americas, Greater China, and internationally. It distributes its products through directly operated single-brand stores (DOS), the e-commerce channels, franchised retail outlets, and a series of selected independent multi-brand stores under the TOD'S, HOGAN, FAY, and ROGER VIVIER brands. The company was founded in 1970 and is headquartered in Sant'Elpidio a Mare, Italy.

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.