This study deals with the core design of a PM vernier machine considering modulation flux effects, and the comparative investigation on volume and performance characteristics of the vernier over conventional PM machines are addressed. To these ends, for a PM vernier machine in operation at the base-speed, the flux density equations for teeth and yokes considering the flux modulation effects are derived, where the air gap harmonic permeance function is used. Using the derived equations, a PM vernier motor with specified yoke flux densities is designed. To identify the predicted flux yoke densities, the flux distribution and iron losses in core parts are analyzed through time-step finite element (FE) simulations. Through Fourier series expansion of the air gap flux waves obtained by FE analysis at several specified times, the harmonic components constituting the flux waves are investigated and their speeds are also evaluated in numerical ways. Finally, to estimate the competitiveness of vernier machines versus conventional machines, the designed PM vernier motor is compared against two different conventional PM motors designed through the same design procedures in various aspects such as volume, torque capacity, efficiency, and power factor, in which, in particular, the core losses are included in efficiency calculation.