Genesco Inc. and Fossil Group, Inc. are two small-cap retail companies vying for attention in the competitive consumer market. This analysis compares their performance across several key metrics, including analyst recommendations, risk factors, profitability, and institutional ownership.
Valuation and Earnings Comparison
When examining revenue and earnings per share (EPS), Genesco shows stronger financial performance in several respects. According to financial data, Genesco’s consensus price target stands at $30.00, indicating a potential downside of 5.91%. In contrast, Fossil Group’s consensus price target is $5.00, suggesting a significant potential upside of 108.77%. Analysts perceive Fossil Group as a more favorable investment due to its higher upside potential.
Profitability and Risk Assessment
Profitability metrics reveal that Genesco outperforms Fossil Group in net margins, return on equity, and return on assets. While Genesco has a beta of 2.23, indicating that its share price is 123% more volatile than the S&P 500, Fossil Group follows closely with a beta of 2.17, or 117% more volatile than the index. This level of volatility raises concerns for risk-averse investors.
Institutional ownership also plays a crucial role in assessing stability and investor confidence. Approximately 94.5% of Genesco’s shares are held by institutional investors, compared to 61.1% for Fossil Group. Additionally, company insiders own 23.1% of Genesco’s shares, while Fossil Group’s insider ownership is considerably lower at 7.8%. High institutional ownership typically suggests that significant investors anticipate long-term growth in the stock.
The overall assessment shows that Genesco leads in 11 out of 15 factors when compared to Fossil Group. This comprehensive analysis indicates that, despite Fossil Group’s higher potential upside, Genesco exhibits stronger fundamentals and stability.
Company Profiles
Genesco operates as a retailer and wholesaler of footwear, apparel, and accessories across various markets, including the United States, Canada, and the United Kingdom. The company functions through four segments: Journeys Group, Schuh Group, Johnston & Murphy Group, and Genesco Brands. Its retail outlets include well-known chains such as Journeys and Schuh, in addition to a robust online presence.
Founded in 1934 and headquartered in Nashville, Tennessee, Genesco has established a significant footprint in the retail sector.
Fossil Group, on the other hand, specializes in consumer fashion accessories, including traditional watches, smartwatches, and a range of other products. The company markets its items under various proprietary and licensed brands, such as FOSSIL, MICHELE, and ARMANI EXCHANGE.
Established in 1984 and based in Richardson, Texas, Fossil Group’s products are distributed through a combination of retail stores and e-commerce channels, catering to a global audience.
In summary, while Fossil Group offers a compelling upside potential, Genesco’s overall performance metrics suggest it is the more stable investment option in the current market landscape. Investors seeking long-term gains may find Genesco’s strong institutional backing and profitability figures particularly appealing.
