G-III Apparel Group, LTD. (NASDAQ: GIII) and Iconix Brand Group (NASDAQ:ICON) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, profitabiliy, analyst recommendations, institutional ownership, earnings, risk and valuation.

Earnings & Valuation

This table compares G-III Apparel Group, LTD. and Iconix Brand Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
G-III Apparel Group, LTD. $2.46 billion 0.50 $136.11 million $0.84 30.12
Iconix Brand Group $359.51 million 1.04 $157.43 million ($4.89) -1.34

Iconix Brand Group has higher revenue, but lower earnings than G-III Apparel Group, LTD.. Iconix Brand Group is trading at a lower price-to-earnings ratio than G-III Apparel Group, LTD., indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

G-III Apparel Group, LTD. has a beta of 0.32, indicating that its share price is 68% less volatile than the S&P 500. Comparatively, Iconix Brand Group has a beta of 1.52, indicating that its share price is 52% more volatile than the S&P 500.

Institutional & Insider Ownership

99.7% of G-III Apparel Group, LTD. shares are held by institutional investors. Comparatively, 84.3% of Iconix Brand Group shares are held by institutional investors. 9.6% of G-III Apparel Group, LTD. shares are held by insiders. Comparatively, 1.3% of Iconix Brand Group 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.

Profitability

This table compares G-III Apparel Group, LTD. and Iconix Brand Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
G-III Apparel Group, LTD. 1.58% 5.57% 3.44%
Iconix Brand Group -82.70% 9.27% 2.69%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for G-III Apparel Group, LTD. and Iconix Brand Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
G-III Apparel Group, LTD. 0 4 4 0 2.50
Iconix Brand Group 0 1 1 0 2.50

G-III Apparel Group, LTD. currently has a consensus target price of $29.00, suggesting a potential upside of 14.62%. Iconix Brand Group has a consensus target price of $13.00, suggesting a potential upside of 98.78%. Given Iconix Brand Group’s higher possible upside, analysts clearly believe Iconix Brand Group is more favorable than G-III Apparel Group, LTD..

Summary

G-III Apparel Group, LTD. beats Iconix Brand Group on 7 of the 12 factors compared between the two stocks.

About G-III Apparel Group, LTD.

G-III Apparel Group, Ltd. designs, manufactures and markets a range of apparel products. The Company operates through two segments: wholesale operations and retail operations. Its apparel products include outerwear, dresses, sportswear, swimwear, women’s suits and women’s performance wear, as well as women’s handbags, footwear, small leather goods, cold weather accessories and luggage. The Company’s owned brands include Donna Karan, DKNY, DKNY Jeans, Vilebrequin, G-III Sports by Carl Banks, Eliza J, Black Rivet and Jessica Howard. It has fashion licenses under the Calvin Klein, Tommy Hilfiger, Karl Lagerfeld, Kenneth Cole, Cole Haan and Dockers brands. Through its team sports business, it has licenses with the National Football League, National Basketball Association, Major League Baseball and National Hockey League. It also operates retail stores under the Donna Karan, Wilsons Leather, Bass, G.H. Bass & Co., Vilebrequin and Calvin Klein Performance names.

About Iconix Brand Group

Iconix Brand Group, Inc. is a brand management company. As of December 31, 2016, the Company owned a portfolio of over 30 global consumer brands across women’s, men’s, home and entertainment categories. The Company operates through five segments: men’s, women’s, home, entertainment and international. The Company’s brand portfolio includes brands, such as Bongo, Badgley Mischka, Buffalo David Bitton, Candie’s, Cannon, Charisma, Danskin, Don Ed Hardy, EckĊ Unltd., Fieldcrest, Joe Boxer, Lee Cooper, London Fog, Marc Ecko Cut & Sew, Mossimo, Mudd, Ocean Pacific, Pony International, Rampage, Royal Velvet, Rocawear, Sandra Lee, The Sharper Image, Starter, Umbro, Waverly, and Zoo York. It operates in various geographic regions, including the United States, Japan and Other (which principally represent Latin America and Europe).

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