Head to Head Analysis: Movado Group (NYSE:MOV) and PVH (NYSE:PVH)

Movado Group (NYSE:MOV) and PVH (NYSE:PVH) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, profitability, earnings, analyst recommendations and risk.

Risk and Volatility

Movado Group has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500. Comparatively, PVH has a beta of 1.74, meaning that its stock price is 74% more volatile than the S&P 500.

Earnings & Valuation

This table compares Movado Group and PVH”s gross 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	1.03	$26.55 million	$1.80	17.27
PVH	$8.95 billion	0.46	$25.30 million	($3.70)	-24.23

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

Institutional and Insider Ownership

72.1% of Movado Group shares are held by institutional investors. Comparatively, 97.3% of PVH shares are held by institutional investors. 30.8% of Movado Group shares are held by company insiders. Comparatively, 1.5% of PVH shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Movado Group pays an annual dividend of $1.60 per share and has a dividend yield of 5.1%. PVH pays an annual dividend of $0.15 per share and has a dividend yield of 0.2%. 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. PVH pays out -4.1% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current recommendations for Movado Group and PVH, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Movado Group	0	2	1	1	2.75
PVH	3	5	6	0	2.21

Movado Group presently has a consensus target price of $40.00, indicating a potential upside of 28.70%. PVH has a consensus target price of $87.91, indicating a potential downside of 1.94%. Given Movado Group’s stronger consensus rating and higher probable upside, analysts plainly believe Movado Group is more favorable than PVH.

Profitability

This table compares Movado Group and PVH’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%
PVH	-1.89%	11.94%	5.04%

Summary

Movado Group beats PVH on 11 of the 17 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 PVH

PVH Corp. operates as an apparel company in the United States and internationally. The company operates through Tommy Hilfiger North America, Tommy Hilfiger International, Calvin Klein North America, Calvin Klein International, and Heritage Brands Wholesale segments. It designs and markets men's, women's, and children's branded apparel, footwear and accessories, underwear, sleepwear, outerwear, home furnishings, luggage, dresses, suits and swimwear, activewear, sportswear, socks and accessories, outerwear, golf products, footwear, watches and jewelry, eyeglasses and non-ophthalmic sunglasses, jeans wear, performance apparel, intimate apparel, dress shirts, handbags, fragrance, small leather goods, and other related products; and men's and boy's tailored clothing products, duvets, pillows, mattress pads and toppers, and feather beds. The company offers its products under its own brands, such as TOMMY HILFIGER, TOMMY JEANS, Calvin Klein, CK Calvin Klein, Calvin Klein Jeans, Calvin Klein Underwear, and Calvin Klein Performance, as well as various other owned, licensed, and private label brands. It distributes its products at wholesale in department, chain, and specialty stores; through warehouse clubs, mass market, and off-price and independent retailers; and through company-operated full-price, outlet stores, and concession locations; and through digital commerce sites. PVH Corp. was founded in 1881 and is based in New York, New York.