Critical Comparison: Movado Group (NYSE:MOV) & Perfect Moment (NASDAQ:PMNT)

Perfect Moment (NASDAQ:PMNT) and Movado Group (NYSE:MOV) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, earnings, valuation, profitability and dividends.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Perfect Moment and Movado Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Perfect Moment	0	0	1	0	3.00
Movado Group	0	1	1	2	3.25

Perfect Moment currently has a consensus target price of $0.40, indicating a potential upside of 300.00%. Movado Group has a consensus target price of $40.00, indicating a potential upside of 21.80%. Given Perfect Moment’s higher possible upside, equities research analysts clearly believe Perfect Moment is more favorable than Movado Group.

Risk and Volatility

Perfect Moment has a beta of -1.59, meaning that its share price is 259% less volatile than the S&P 500. Comparatively, Movado Group has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500.

Profitability

This table compares Perfect Moment and Movado Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Perfect Moment	-67.38%	-513.83%	-119.38%
Movado Group	6.00%	8.49%	5.78%

Valuation & Earnings

This table compares Perfect Moment and Movado Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Perfect Moment	$22.93 million	0.23	-$8.72 million	($0.15)	-0.67
Movado Group	$671.31 million	1.09	$26.55 million	$1.80	18.24

Movado Group has higher revenue and earnings than Perfect Moment. Perfect Moment 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 & Insider Ownership

23.0% of Perfect Moment shares are owned by institutional investors. Comparatively, 72.1% of Movado Group shares are owned by institutional investors. 22.2% of Perfect Moment shares are owned by insiders. Comparatively, 30.8% of Movado Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Movado Group beats Perfect Moment on 13 of the 14 factors compared between the two stocks.

About Perfect Moment

Perfect Moment Ltd., together with its subsidiaries, owns and operates a fashion brand that offers ski, surf, and activewear collections under the brand name of Perfect Moment. It offers skiwear, outerwear, swimwear and activewear for women, men, and children. The company sells its collections directly to customers through e-commerce and to wholesale accounts, as well as through other sales partnerships. Perfect Moment Ltd. was founded in 1984 and is based in London, the United Kingdom.

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.