Financial Analysis: G-III Apparel Group (NASDAQ:GIII) vs. Perfect Moment (NASDAQ:PMNT)

G-III Apparel Group (NASDAQ:GIII) and Perfect Moment (NASDAQ:PMNT) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.

Analyst Ratings

This is a breakdown of current recommendations and price targets for G-III Apparel Group and Perfect Moment, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
G-III Apparel Group	1	2	2	0	2.20
Perfect Moment	0	0	1	0	3.00

G-III Apparel Group presently has a consensus target price of $33.00, indicating a potential upside of 25.95%. Perfect Moment has a consensus target price of $6.00, indicating a potential upside of 430.97%. Given Perfect Moment’s stronger consensus rating and higher possible upside, analysts plainly believe Perfect Moment is more favorable than G-III Apparel Group.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
G-III Apparel Group	$3.18 billion	0.36	$176.17 million	$4.27	6.14
Perfect Moment	$21.31 million	0.88	-$8.72 million	($1.30)	-0.87

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

Insider & Institutional Ownership

92.1% of G-III Apparel Group shares are owned by institutional investors. Comparatively, 23.0% of Perfect Moment shares are owned by institutional investors. 12.4% of G-III Apparel Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
G-III Apparel Group	5.59%	11.66%	6.77%
Perfect Moment	-67.38%	-513.83%	-119.38%

Summary

G-III Apparel Group beats Perfect Moment on 10 of the 13 factors compared between the two stocks.

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.

About Perfect Moment

Perfect Moment Ltd., together with its subsidiaries, owns and operates a fashion brand that offers ski, surf, and activewear collections under the brand name of Perfect Moment. It offers skiwear, outerwear, swimwear and activewear for women, men, and children. The company sells its collections directly to customers through e-commerce and to wholesale accounts, as well as through other sales partnerships. Perfect Moment Ltd. was founded in 1984 and is based in London, the United Kingdom.