Comparing Fossil Group (NASDAQ:FOSL) and Deckers Outdoor (NYSE:DECK)

Fossil Group (NASDAQ:FOSL) and Deckers Outdoor (NYSE:DECK) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, institutional ownership, valuation and risk.

Institutional & Insider Ownership

61.1% of Fossil Group shares are owned by institutional investors. Comparatively, 97.8% of Deckers Outdoor shares are owned by institutional investors. 3.8% of Fossil Group shares are owned by company insiders. Comparatively, 0.4% of Deckers Outdoor shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Fossil Group and Deckers Outdoor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fossil Group	-7.09%	-59.76%	-7.53%
Deckers Outdoor	18.54%	41.51%	26.55%

Volatility and Risk

Fossil Group has a beta of 1.61, meaning that its share price is 61% more volatile than the S&P 500. Comparatively, Deckers Outdoor has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500.

Valuation and Earnings

This table compares Fossil Group and Deckers Outdoor”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fossil Group	$1.00 billion	0.26	-$78.30 million	($1.28)	-3.51
Deckers Outdoor	$5.47 billion	1.99	$1.02 billion	$7.05	11.32

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

Analyst Recommendations

This is a breakdown of current ratings for Fossil Group and Deckers Outdoor, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fossil Group	1	1	3	0	2.40
Deckers Outdoor	3	13	9	0	2.24

Fossil Group presently has a consensus target price of $9.00, indicating a potential upside of 100.45%. Deckers Outdoor has a consensus target price of $114.80, indicating a potential upside of 43.85%. Given Fossil Group’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Fossil Group is more favorable than Deckers Outdoor.

Summary

Deckers Outdoor beats Fossil Group on 10 of the 14 factors compared between the two stocks.

About Fossil Group

Fossil Group, Inc., together with its subsidiaries, designs, develops, markets, and distributes consumer fashion accessories in the United States, Europe, Asia, and internationally. The company’s products include traditional watches, smartwatches, jewelry, handbags, small leather goods, belts, and sunglasses. It also manufactures and distributes private label brands, as well as branded products purchased for resell in other branded retail stores. The company offers its products under its proprietary brands, such as FOSSIL, SKAGEN, MICHELE, RELIC, and ZODIAC; and under the licensed brands, including ARMANI EXCHANGE, DIESEL, DKNY, EMPORIO ARMANI, KATE SPADE NEW YORK, MICHAEL KORS, TORY BURCH, and Skechers. The company sells its products through company-owned retail and outlet stores, department and specialty retail stores, mass market stores, e-commerce sites, licensed and franchised FOSSIL retail stores, and retail concessions, as well as sells its products on airlines. The company was formerly known as Fossil, Inc. and changed its name to Fossil Group, Inc. in May 2013. Fossil Group, Inc. was founded in 1984 and is headquartered in Richardson, Texas.

About Deckers Outdoor

Deckers Outdoor Corporation, together with its subsidiaries, designs, markets, and distributes footwear, apparel, and accessories for casual lifestyle use and high-performance activities in the United States and internationally. The company offers premium footwear, apparel, and accessories under the UGG brand name; footwear, apparel, and accessories for ultra-runners and athletes under the HOKA brand name; and sandals, shoes, and boots under the Teva brand name. It also provides relaxed casual shoes and sandals under the Sanuk brand name; casual footwear fashion line under the Koolaburra brand name; and footwear under the AHNU brand name. The company sells its products through domestic and international retailers; international distributors; and directly to its consumers through its direct-to-consumer business, which includes e-commerce websites and retail stores. Deckers Outdoor Corporation was founded in 1973 and is headquartered in Goleta, California.