Financial Comparison: Movado Group (NYSE:MOV) vs. Tapestry (NYSE:TPR)

Movado Group (NYSE:MOV) and Tapestry (NYSE:TPR) are both consumer cyclical companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Movado Group	6.09%	8.18%	5.47%
Tapestry	13.15%	39.78%	9.64%

Volatility and Risk

Movado Group has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500. Comparatively, Tapestry has a beta of 1.59, indicating that its share price is 59% more volatile than the S&P 500.

Institutional and Insider Ownership

72.1% of Movado Group shares are owned by institutional investors. Comparatively, 90.8% of Tapestry shares are owned by institutional investors. 30.1% of Movado Group shares are owned by company insiders. Comparatively, 0.9% of Tapestry shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

Movado Group pays an annual dividend of $1.40 per share and has a dividend yield of 5.8%. Tapestry pays an annual dividend of $1.40 per share and has a dividend yield of 3.5%. Movado Group pays out 78.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Tapestry pays out 37.0% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Movado Group and Tapestry, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Movado Group	0	0	1	0	3.00
Tapestry	0	5	9	0	2.64

Movado Group presently has a consensus price target of $41.00, suggesting a potential upside of 69.28%. Tapestry has a consensus price target of $46.13, suggesting a potential upside of 13.85%. Given Movado Group’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Movado Group is more favorable than Tapestry.

Earnings & Valuation

This table compares Movado Group and Tapestry’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Movado Group	$664.37 million	0.81	$46.71 million	$1.79	13.53
Tapestry	$6.67 billion	1.40	$936.00 million	$3.78	10.72

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

Summary

Tapestry beats Movado Group on 11 of the 16 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 Tapestry

Tapestry, Inc. provides luxury accessories and branded lifestyle products in the United States, Japan, Greater China, and internationally. The company operates in three segments: Coach, Kate Spade, and Stuart Weitzman. It offers women’s handbags; and women’s accessories, such as small leather goods which includes mini and micro handbags, money pieces, wristlets, pouches, and cosmetic cases, as well as novelty accessories including address books, time management and travel accessories, sketchbooks, and portfolios; and belts, key rings, and charms. The company also provides men products, which includes bag collections, such as business cases, computer bags, messenger-style bags, backpacks, and totes; small leather goods including wallets, card cases, travel organizers, and belts; and footwear, watches, fragrances, sunglasses, novelty accessories, and ready-to-wear items. In addition, it offers other products including women’s footwear and fragrances; eyewear and sunglasses; and jewelry, such as bracelets, necklaces, rings, and earrings, watches, and other women’s seasonal lifestyle apparel collections, including outerwear, ready-to-wear and cold weather accessories, such as gloves, scarves, and hats. Further, the company provides kids items, housewares, and home accessories, such as fashion bedding and tableware, stationery, and gifts. It offers its products through e-commerce sites and concession shop-in-shops, wholesale, and third-party distributors under the Coach, Kate Spade, and Stuart Weitzman brand names. The company was formerly known as Coach, Inc. and changed its name to Tapestry, Inc. in October 2017. Tapestry, Inc. was founded in 1941 and is headquartered in New York, New York.