Fossil vs Garmin Which Offers More Value?

Fossil Group and Garmin Ltd. are two prominent players in the consumer electronics industry, known for their innovative products in the wearable technology sector. While both companies have shown strong performances in recent years, with steady revenue growth and market presence, their stock performances have varied. Fossil's stock has been more volatile due to changing consumer preferences and competition, while Garmin has demonstrated consistent growth and a loyal customer base. Investors looking to capitalize on the booming wearable technology market should carefully consider the strengths and weaknesses of both companies before making investment decisions.

Fossil or Garmin?

When comparing Fossil and Garmin, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Fossil and Garmin.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Fossil has a dividend yield of -%, while Garmin has a dividend yield of 1.72%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Fossil reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Garmin reports a 5-year dividend growth of 6.82% year and a payout ratio of 37.42%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Fossil P/E ratio at -0.86 and Garmin's P/E ratio at 27.28. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Fossil P/B ratio is 0.64 while Garmin's P/B ratio is 5.52.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Fossil has seen a 5-year revenue growth of -0.48%, while Garmin's is 0.54%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Fossil's ROE at -58.91% and Garmin's ROE at 21.10%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $1.85 for Fossil and $214.46 for Garmin. Over the past year, Fossil's prices ranged from $0.75 to $2.61, with a yearly change of 248.00%. Garmin's prices fluctuated between $119.15 and $222.97, with a yearly change of 87.13%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.