G-III Apparel Group (NASDAQ: GIII) and Sequential Brands Group (NASDAQ:SQBG) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, institutional ownership, earnings and dividends.
Valuation and Earnings
This table compares G-III Apparel Group and Sequential Brands Group’s gross revenue, earnings per share (EPS) and valuation.
G-III Apparel Group has higher revenue and earnings than Sequential Brands Group. Sequential Brands Group is trading at a lower price-to-earnings ratio than G-III Apparel Group, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and target prices for G-III Apparel Group and Sequential Brands Group, as reported by MarketBeat.com.
G-III Apparel Group presently has a consensus price target of $45.70, suggesting a potential downside of 3.87%. Sequential Brands Group has a consensus price target of $4.80, suggesting a potential upside of 163.74%. Given Sequential Brands Group’s higher probable upside, analysts plainly believe Sequential Brands Group is more favorable than G-III Apparel Group.
Volatility and Risk
G-III Apparel Group has a beta of 0.25, suggesting that its stock price is 75% less volatile than the S&P 500. Comparatively, Sequential Brands Group has a beta of -0.27, suggesting that its stock price is 127% less volatile than the S&P 500.
Institutional and Insider Ownership
99.0% of G-III Apparel Group shares are held by institutional investors. Comparatively, 45.3% of Sequential Brands Group shares are held by institutional investors. 9.8% of G-III Apparel Group shares are held by insiders. Comparatively, 29.8% of Sequential Brands Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This table compares G-III Apparel Group and Sequential Brands Group’s net margins, return on equity and return on assets.
G-III Apparel Group beats Sequential Brands Group on 12 of the 14 factors compared between the two stocks.
G-III Apparel Group Company Profile
G-III Apparel Group, Ltd. designs, manufactures, and markets women’s and men’s apparel in the United States and internationally. The company operates in two segments, Wholesale Operations and Retail Operations. Its products include outerwear, dresses, sportswear, swimwear, women’s suits, and women’s performance wear; and women’s handbags, footwear, small leather goods, cold weather accessories, and luggage. The company markets apparel and other products under the proprietary brand names, including DKNY, Donna Karan, Andrew Marc, Marc New York, Vilebrequin, G.H. Bass, Black Rivet, Wilsons, Eliza J, Jessica Howard, G-III Sports by Carl Banks, and G-III for Her; and licensed brands, such as Calvin Klein, Tommy Hilfiger, Karl Lagerfeld Paris, Guess?, Kenneth Cole, Cole Haan, Levi’s, Vince Camuto, Ivanka Trump, Kensie, and Dockers. It has licenses with the National Football League, Major League Baseball, National Basketball Association, National Hockey League, Touch by Alyssa Milano, Hands High, Collegiate Licensing Company, and Starter, as well as approximately 150 U.S. colleges and universities. The company offers its products to department, specialty, and mass merchant retail stores. As of January 31, 2018, it operated 367 leased retail stores, which included 165 Wilsons Leather stores, 139 G.H. Bass stores, 51 DKNY stores, 8 Karl Lagerfeld Paris stores, and 4 Calvin Klein Performance stores. The company also operates Wilsons Leather, G.H. Bass, and DKNY branded online stores. G-III Apparel Group, Ltd. was founded in 1956 and is based in New York, New York.
Sequential Brands Group Company Profile
Sequential Brands Group, Inc. owns, promotes, markets, and licenses a portfolio of consumer brands in the United States and internationally. It offers products in the apparel, footwear, eyewear, fashion accessories, and home goods categories under the Jessica Simpson, AND1, Avia, GAIAM, Joe’s Jeans, Ellen Tracy, Emeril Lagasse, William Rast, Heelys, Revo, Caribbean Joe, DVS, The Franklin Mint, Linens N Things, SPRI, Nevados, and FUL brand names; and food, wine, magazines, books, and other print and digital content categories under the Martha Stewart brand name. The company licenses its brands through various distribution channels to retailers, wholesalers, and distributors. Sequential Brands Group, Inc. was incorporated in 1982 and is headquartered in New York, New York.