Financial Analysis: Salvatore Ferragamo (SFRGF) vs. Its Rivals

Salvatore Ferragamo (OTCMKTS:SFRGF) is one of 118 public companies in the “Textiles, Apparel & Luxury Goods” industry, but how does it weigh in compared to its rivals? We will compare Salvatore Ferragamo to related businesses based on the strength of its risk, valuation, profitability, institutional ownership, dividends, earnings and analyst recommendations.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Salvatore Ferragamo and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Salvatore Ferragamo	0	0	1	0	3.00
Salvatore Ferragamo Competitors	1589	7623	10202	342	2.47

As a group, “Textiles, Apparel & Luxury Goods” companies have a potential upside of 18.38%. Given Salvatore Ferragamo’s rivals higher probable upside, analysts clearly believe Salvatore Ferragamo has less favorable growth aspects than its rivals.

Institutional and Insider Ownership

8.8% of Salvatore Ferragamo shares are held by institutional investors. Comparatively, 54.6% of shares of all “Textiles, Apparel & Luxury Goods” companies are held by institutional investors. 16.3% of shares of all “Textiles, Apparel & Luxury Goods” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

Salvatore Ferragamo pays an annual dividend of $0.40 per share and has a dividend yield of 4.5%. Salvatore Ferragamo pays out 45.8% of its earnings in the form of a dividend. As a group, “Textiles, Apparel & Luxury Goods” companies pay a dividend yield of 3.2% and pay out 23.0% of their earnings in the form of a dividend.

Valuation & Earnings

This table compares Salvatore Ferragamo and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Salvatore Ferragamo	N/A	N/A	10.18
Salvatore Ferragamo Competitors	$5.69 billion	$478.19 million	27.81

Salvatore Ferragamo’s rivals have higher revenue and earnings than Salvatore Ferragamo. Salvatore Ferragamo is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Salvatore Ferragamo and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Salvatore Ferragamo	N/A	N/A	N/A
Salvatore Ferragamo Competitors	-3.38%	13.20%	2.62%

Summary

Salvatore Ferragamo rivals beat Salvatore Ferragamo on 9 of the 13 factors compared.

Salvatore Ferragamo Company Profile

Salvatore Ferragamo S.p.A., through its subsidiaries, creates, produces, and sells luxury goods for men and women in Italy, rest of Europe, North America, Japan, the Asia Pacific, and Central and South America. It offers men's and women's footwear; leather goods, such as handbags, suitcases, belts, wallets, and other men's and women's leather accessories; and knitwear, clothes for formal occasions, sportswear, and leisure wear, as well as outerwear, such as husky jackets, ponchos, and leather garments. The company also provides silk accessories, including ties, foulards, scarves, etc.; home accessories comprising plaid throws, cushions, and beach towels; costume jewelry; and other accessories consisting of shawls and gloves. In addition, it develops and distributes perfumes and fragrances. Further, the company offers men's and women's sunglasses and prescription glasses; jewelry products; and watches. Additionally, it is also involved in the real estate management business. The company was formerly known as Salvatore Ferragamo Italia S.p.A. and changed its name to Salvatore Ferragamo S.p.A. in April 2011. The company was founded in 1927 and is headquartered in Florence, Italy. Salvatore Ferragamo S.p.A. is a subsidiary of Ferragamo Finanziaria S.p.A.