Innovative Designs (OTCMKTS:IVDN – Get Free Report) and G-III Apparel Group (NASDAQ:GIII – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, earnings, institutional ownership, valuation and risk.
Institutional and Insider Ownership
92.1% of G-III Apparel Group shares are owned by institutional investors. 24.4% of Innovative Designs shares are owned by insiders. Comparatively, 13.0% of G-III Apparel Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Innovative Designs and G-III Apparel Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Innovative Designs | 18.54% | 29.89% | 26.00% |
| G-III Apparel Group | 5.84% | 11.53% | 7.47% |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Innovative Designs | $1.38 million | 5.02 | $100,000.00 | $0.03 | 6.00 |
| G-III Apparel Group | $3.12 billion | 0.37 | $193.57 million | $4.04 | 6.83 |
G-III Apparel Group has higher revenue and earnings than Innovative Designs. Innovative Designs 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.
Volatility and Risk
Innovative Designs has a beta of -2.99, indicating that its share price is 399% less volatile than the S&P 500. Comparatively, G-III Apparel Group has a beta of 1.6, indicating that its share price is 60% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and price targets for Innovative Designs and G-III Apparel Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Innovative Designs | 0 | 0 | 0 | 0 | 0.00 |
| G-III Apparel Group | 1 | 4 | 3 | 0 | 2.25 |
G-III Apparel Group has a consensus target price of $30.00, suggesting a potential upside of 8.80%. Given G-III Apparel Group’s stronger consensus rating and higher possible upside, analysts plainly believe G-III Apparel Group is more favorable than Innovative Designs.
Summary
G-III Apparel Group beats Innovative Designs on 9 of the 14 factors compared between the two stocks.
About Innovative Designs
Innovative Designs, Inc. engages in manufacture and marketing of cold weather recreational and industrial clothing products in the United States and Canada. The company operates in two segments, Apparel and House Wrap. It offers arctic armor line products, including jackets, bibs, and gloves for ice fisherman, snowmobilers, utility workers, oil/gas pipeline workers, railroad workers, construction workers, ski resort workers, and police and first responders; and house wrap that provides barrier protection and moisture vapor transmission and insulation for the building construction industry. In addition, it offers INSULTEX material in bulk to non-competing customers; products that restore the waterproof character of the outer side of its arctic armor clothing; and cold weather headgears and base insulation clothing products. The company primarily sells its products through independent sales agents, agencies, retailers, and distributors, as well as through website. The company was incorporated in 2002 and is based in Pittsburgh, Pennsylvania.
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.
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