Fossil vs Guess' Which Is Superior?

Fossil Group and Guess Inc. are two well-known fashion companies in the retail industry. While both companies specialize in trendy and affordable accessories, they have distinct business models and target markets. Fossil primarily focuses on watches and leather goods, while Guess offers a wider range of products, including clothing and footwear. Investors considering these stocks should analyze their financial performance, market positioning, and growth prospects to make an informed investment decision.

Fossil or Guess'?

When comparing Fossil and Guess', 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 Guess'.

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 Guess' has a dividend yield of 22.5%. 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, Guess' reports a 5-year dividend growth of 4.56% year and a payout ratio of 135.90%.

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 Guess''s P/E ratio at 5.75. 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 Guess''s P/B ratio is 1.73.

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 Guess''s is 0.58%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Fossil's ROE at -58.91% and Guess''s ROE at 24.70%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $1.85 for Fossil and $14.96 for Guess'. Over the past year, Fossil's prices ranged from $0.75 to $2.61, with a yearly change of 248.00%. Guess''s prices fluctuated between $14.96 and $33.50, with a yearly change of 123.86%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.