Financial Comparison: Chow Tai Fook (OTCMKTS:CJEWY) and Movado Group (NYSE:MOV)

Chow Tai Fook (OTCMKTS:CJEWY) and Movado Group (NYSE:MOV) are both retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.

Risk and Volatility

Chow Tai Fook has a beta of 0.19, meaning that its stock price is 81% less volatile than the S&P 500. Comparatively, Movado Group has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500.

Insider and Institutional Ownership

72.1% of Movado Group shares are owned by institutional investors. 30.8% of Movado Group shares are owned by company 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 Chow Tai Fook and Movado Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chow Tai Fook	N/A	N/A	N/A
Movado Group	2.78%	5.10%	3.39%

Dividends

Chow Tai Fook pays an annual dividend of $0.41 per share and has a dividend yield of 2.4%. Movado Group pays an annual dividend of $1.40 per share and has a dividend yield of 8.5%. Movado Group pays out 175.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a breakdown of recent ratings for Chow Tai Fook and Movado Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chow Tai Fook	0	0	0	0	0.00
Movado Group	0	0	1	0	3.00

Movado Group has a consensus target price of $31.50, indicating a potential upside of 91.14%. Given Movado Group’s stronger consensus rating and higher probable upside, analysts clearly believe Movado Group is more favorable than Chow Tai Fook.

Valuation & Earnings

This table compares Chow Tai Fook and Movado Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chow Tai Fook	$11.50 billion	1.47	$758.96 million	N/A	N/A
Movado Group	$653.38 million	0.56	$18.36 million	$0.80	20.60

Chow Tai Fook has higher revenue and earnings than Movado Group.

Summary

Movado Group beats Chow Tai Fook on 10 of the 14 factors compared between the two stocks.

About Chow Tai Fook

Chow Tai Fook Jewellery Group Limited, an investment holding company, manufactures and sells jewelry products in Mainland China, Hong Kong, Macau, Taiwan, Cambodia, Canada, Korea, Japan, Malaysia, the Philippines, Singapore, Thailand, the United States, and Vietnam. The company offers gem-set, platinum and k-gold jewelry, and gold jewelry and products under the CHOW TAI FOOK, HEARTS ON FIRE, ENZO, MONOLOGUE, and SOINLOVE brands. It also distributes watches of various brands. In addition, the company is involved in the trading of diamonds; and the provision of services to franchisees. The company also sells its products through online platforms. The company was founded in 1929 and is headquartered in Central, Hong Kong. Chow Tai Fook Jewellery Group Limited is a subsidiary of Chow Tai Fook Capital Limited.

About Movado Group

Movado Group, Inc. designs, sources, markets, and distributes watches in the United States and internationally. The company operates in two segments, Watch and Accessory Brands, and Company Stores. The company offers its watches under the Movado, Concord, Ebel, Olivia Burton, and MVMT brands, as well as licensed brands comprising Coach, Tommy Hilfiger, HUGO BOSS, Lacoste, and Calvin Klein. It also designs, sources, markets, and distributes jewelry and other accessories; and provides after-sales and shipping services. The company’s customers include jewelry store chains, department stores, independent regional jewelers, network of independent distributors, online marketplaces, licensors’ retail stores, and third-party e-commerce retailers. It sells directly to consumers through its e-commerce platforms. The company was formerly known as North American Watch Corporation and changed its name to Movado Group, Inc. in 1996. Movado Group, Inc. was founded in 1961 and is headquartered in Paramus, New Jersey.