Reviewing G-III Apparel Group (NASDAQ:GIII) & Hugo Boss (OTCMKTS:BOSSY)

Hugo Boss (OTCMKTS:BOSSY) and G-III Apparel Group (NASDAQ:GIII) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, risk, valuation, institutional ownership, earnings, analyst recommendations and profitability.

Profitability

This table compares Hugo Boss and G-III Apparel Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hugo Boss	5.31%	15.59%	6.13%
G-III Apparel Group	4.89%	9.37%	6.22%

Dividends

Hugo Boss pays an annual dividend of $0.21 per share and has a dividend yield of 2.4%. G-III Apparel Group pays an annual dividend of $0.40 per share and has a dividend yield of 1.3%. Hugo Boss pays out 29.2% of its earnings in the form of a dividend. G-III Apparel Group pays out 12.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Institutional & Insider Ownership

92.1% of G-III Apparel Group shares are owned by institutional investors. 13.0% of G-III Apparel Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Hugo Boss and G-III Apparel Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hugo Boss	$4.66 billion	0.66	$230.99 million	$0.72	12.29
G-III Apparel Group	$3.18 billion	0.40	$193.57 million	$3.33	9.05

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

Volatility & Risk

Hugo Boss has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500. Comparatively, G-III Apparel Group has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Hugo Boss and G-III Apparel Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hugo Boss	0	3	0	0	2.00
G-III Apparel Group	1	4	2	0	2.14

G-III Apparel Group has a consensus target price of $31.20, indicating a potential upside of 3.48%. Given G-III Apparel Group’s stronger consensus rating and higher probable upside, analysts clearly believe G-III Apparel Group is more favorable than Hugo Boss.

Summary

G-III Apparel Group beats Hugo Boss on 9 of the 16 factors compared between the two stocks.

About Hugo Boss

Hugo Boss AG, together with its subsidiaries, provides apparels, shoes, and accessories for men and women worldwide. It also offers licensed products comprising of fragrances, eyewear, watches, children’s fashion, equestrian, and cycling. The company markets and sells its products under the BOSS and HUGO brand names through freestanding stores, shop-in-shops, factory outlets, multi-brand stores, and franchise business, as well as online retailers, distribution, and stores. Hugo Boss AG was founded in 1924 and is headquartered in Metzingen, Germany.

About G-III Apparel Group

G-III Apparel Group, Ltd. designs, sources, and markets women's and men's apparel in the United States and internationally. The company operates through 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 brands, including DKNY, Donna Karan, Karl Lagerfeld, Karl Lagerfeld Paris, Vilebrequin, G.H. Bass, Eliza J, Jessica Howard, Andrew Marc, Marc New York, Wilsons Leather, Sonia Rykiel, and G-III Sports by Carl Banks; and licensed brands, such as Calvin Klein, Tommy Hilfiger, Levi's, Guess?, Kenneth Cole, Cole Haan, Vince Camuto, Margaritaville, and Dockers. It has licenses with the National Football League, National Basketball Association, Major League Baseball, and National Hockey League, as well as approximately 150 U.S. colleges and universities. The company offers its products to department, specialty, and mass merchant retail stores. It also sells its products online. G-III Apparel Group, Ltd. was founded in 1956 and is based in New York, New York.