Salvatore Ferragamo (SFRGF) vs. The Competition Critical Review

Salvatore Ferragamo (OTCMKTS:SFRGF) is one of 116 public companies in the “Textiles, Apparel & Luxury Goods” industry, but how does it weigh in compared to its peers? We will compare Salvatore Ferragamo to similar companies based on the strength of its valuation, earnings, profitability, risk, analyst recommendations, institutional ownership and dividends.

Analyst Ratings

This is a summary of recent ratings and price targets for Salvatore Ferragamo and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Salvatore Ferragamo	0	0	1	0	3.00
Salvatore Ferragamo Competitors	1530	7480	10020	333	2.47

As a group, “Textiles, Apparel & Luxury Goods” companies have a potential upside of 8.38%. Given Salvatore Ferragamo’s peers higher probable upside, analysts plainly believe Salvatore Ferragamo has less favorable growth aspects than its peers.

Insider & Institutional Ownership

8.8% of Salvatore Ferragamo shares are held by institutional investors. Comparatively, 54.5% of shares of all “Textiles, Apparel & Luxury Goods” companies are held by institutional investors. 15.3% of shares of all “Textiles, Apparel & Luxury Goods” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Salvatore Ferragamo and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Salvatore Ferragamo	N/A	N/A	N/A
Salvatore Ferragamo Competitors	-4.14%	19.75%	2.48%

Valuation & Earnings

This table compares Salvatore Ferragamo and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Salvatore Ferragamo	N/A	N/A	10.18
Salvatore Ferragamo Competitors	$5.79 billion	$471.21 million	27.27

Salvatore Ferragamo’s peers have higher revenue and earnings than Salvatore Ferragamo. Salvatore Ferragamo is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Dividends

Salvatore Ferragamo pays an annual dividend of $0.40 per share and has a dividend yield of 4.5%. Salvatore Ferragamo pays out 45.8% of its earnings in the form of a dividend. As a group, “Textiles, Apparel & Luxury Goods” companies pay a dividend yield of 3.2% and pay out 22.8% of their earnings in the form of a dividend.

Summary

Salvatore Ferragamo peers beat Salvatore Ferragamo on 9 of the 13 factors compared.

About Salvatore Ferragamo

Salvatore Ferragamo S.p.A., through its subsidiaries, creates, produces, and sells luxury goods for men and women in Italy, rest of Europe, North America, Japan, the Asia Pacific, and Central and South America. It offers men's and women's footwear; leather goods, such as handbags, suitcases, belts, wallets, and other men's and women's leather accessories; and knitwear, clothes for formal occasions, sportswear, and leisure wear, as well as outerwear, such as husky jackets, ponchos, and leather garments. The company also provides silk accessories, including ties, foulards, scarves, etc.; home accessories comprising plaid throws, cushions, and beach towels; costume jewelry; and other accessories consisting of shawls and gloves. In addition, it develops and distributes perfumes and fragrances. Further, the company offers men's and women's sunglasses and prescription glasses; jewelry products; and watches. Additionally, it is also involved in the real estate management business. The company was formerly known as Salvatore Ferragamo Italia S.p.A. and changed its name to Salvatore Ferragamo S.p.A. in April 2011. The company was founded in 1927 and is headquartered in Florence, Italy. Salvatore Ferragamo S.p.A. is a subsidiary of Ferragamo Finanziaria S.p.A.