Analyzing Watches of Switzerland Group (OTCMKTS:WOSGF) & Deckers Outdoor (NYSE:DECK)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Deckers Outdoor	18.54%	41.51%	26.55%
Watches of Switzerland Group	N/A	N/A	N/A

Institutional and Insider Ownership

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Deckers Outdoor	$5.47 billion	2.43	$1.02 billion	$7.05	13.82
Watches of Switzerland Group	N/A	N/A	N/A	N/A	N/A

Deckers Outdoor has higher revenue and earnings than Watches of Switzerland Group.

Analyst Recommendations

This is a breakdown of recent ratings for Deckers Outdoor and Watches of Switzerland Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Deckers Outdoor	2	13	9	0	2.29
Watches of Switzerland Group	0	2	2	0	2.50

Deckers Outdoor currently has a consensus target price of $117.16, indicating a potential upside of 20.20%. Given Deckers Outdoor’s higher possible upside, analysts clearly believe Deckers Outdoor is more favorable than Watches of Switzerland Group.

Summary

Deckers Outdoor beats Watches of Switzerland Group on 8 of the 9 factors compared between the two stocks.

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.

About Watches of Switzerland Group

Watches of Switzerland Group PLC operates as a retailer of luxury watches and jewelry in the United Kingdom, Europe, and the United States. It offers its products under the Goldsmiths, Mappin & Webb, Watches of Switzerland, Mayors Jewelers, and Betteridge brands. The company also engages in sale of fashion and classic watches, and jewelry; and gifts, as well as provides servicing, repairs, and product insurance services. Watches of Switzerland Group plc was founded in 1775 and is headquartered in Leicester, the United Kingdom.