Moncler (OTCMKTS:MONRF) and PVH (NYSE:PVH) Critical Review

PVH (NYSE:PVH) and Moncler (OTCMKTS:MONRF) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, risk, institutional ownership, earnings and analyst recommendations.

Valuation & Earnings

This table compares PVH and Moncler’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PVH	$9.22 billion	0.87	$200.40 million	$8.48	15.84
Moncler	N/A	N/A	N/A	$0.42	176.84

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

Analyst Recommendations

This is a breakdown of recent ratings for PVH and Moncler, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PVH	0	4	11	0	2.73
Moncler	0	0	0	0	N/A

PVH currently has a consensus target price of $114.07, indicating a potential downside of 15.10%. Given PVH’s higher probable upside, equities analysts plainly believe PVH is more favorable than Moncler.

Institutional and Insider Ownership

97.3% of PVH shares are held by institutional investors. Comparatively, 12.2% of Moncler shares are held by institutional investors. 0.8% of PVH shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares PVH and Moncler’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PVH	5.76%	11.63%	5.12%
Moncler	N/A	N/A	N/A

Dividends

PVH pays an annual dividend of $0.15 per share and has a dividend yield of 0.1%. Moncler pays an annual dividend of $0.10 per share and has a dividend yield of 0.1%. PVH pays out 1.8% of its earnings in the form of a dividend. Moncler pays out 23.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Summary

PVH beats Moncler on 10 of the 12 factors compared between the two stocks.

About PVH

PVH Corp. operates as an apparel company in the United States and internationally. The company operates through six segments: Tommy Hilfiger North America, Tommy Hilfiger International, Calvin Klein North America, Calvin Klein International, Heritage Brands Wholesale, and Heritage Brands Retail. It designs, markets, and retails men's, women's, and children's apparel and accessories, include branded dress shirts, neckwear, sportswear, jeans wear, performance apparel, intimate apparel, underwear, swimwear, swim-related products, handbags, accessories, footwear, outerwear, home furnishings, luggage products, sleepwear, loungewear, hats, scarves, gloves, socks, watches and jewelry, eyeglasses and non-ophthalmic sunglasses, fragrance, home bed and bath furnishings, small leather goods, and other products. The company offers its products under its own brands, such as Tommy Hilfiger, Calvin Klein, Van Heusen, IZOD, ARROW, Warner's, Olga, Geoffrey Beene, and True&Co., as well as various other owned, licensed, and private label brands. The company distributes its products at wholesale in department, chain, and specialty stores, as well as through warehouse clubs, mass market, and off-price and independent retailers; and through company-operated full-price, outlet stores, and concession locations, as well as through digital commerce sites. PVH Corp. was founded in 1881 and is based in New York, New York.

About Moncler

Moncler S.p.A., together with its subsidiaries, designs, produces, and distributes clothing and related accessories for men, women, and children under the Moncler and Stone Island brand names. Its product portfolio includes footwear products; leather goods, such as bags, backpacks, and accessories; and sunglasses and eyeglasses under the Moncler Lunettes brand. The company also offers perfume for men and women. It operates directly operated stores and wholesale shop-in-shops. The company also sells its products through moncler.com, an online store. It serves in Italy, other European countries, Japan, the rest of Asia, and the Americas. Moncler S.p.A. was founded in 1952 and is headquartered in Milan, Italy.