Crocs (NASDAQ: CROX) and Caleres (NYSE:CAL) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitabiliy and earnings.
Dividends
Caleres pays an annual dividend of $0.28 per share and has a dividend yield of 1.0%. Crocs does not pay a dividend. Caleres pays out 19.2% of its earnings in the form of a dividend.
Volatility & Risk
Crocs has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500. Comparatively, Caleres has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Crocs and Caleres, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Crocs | 0 | 5 | 0 | 0 | 2.00 |
| Caleres | 0 | 2 | 4 | 0 | 2.67 |
Crocs currently has a consensus price target of $8.20, suggesting a potential upside of 3.14%. Caleres has a consensus price target of $31.75, suggesting a potential upside of 15.04%. Given Caleres’ stronger consensus rating and higher probable upside, analysts plainly believe Caleres is more favorable than Crocs.
Profitability
This table compares Crocs and Caleres’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Crocs | -1.52% | -4.89% | -2.00% |
| Caleres | 2.39% | 13.80% | 6.15% |
Institutional & Insider Ownership
90.9% of Crocs shares are owned by institutional investors. Comparatively, 84.8% of Caleres shares are owned by institutional investors. 1.0% of Crocs shares are owned by company insiders. Comparatively, 3.2% of Caleres shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Crocs and Caleres’ top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Crocs | $1.03 billion | 0.57 | $32.99 million | ($0.46) | -17.28 |
| Caleres | $2.63 billion | 0.45 | $185.72 million | $1.46 | 18.90 |
Caleres has higher revenue and earnings than Crocs. Crocs is trading at a lower price-to-earnings ratio than Caleres, indicating that it is currently the more affordable of the two stocks.
Summary
Caleres beats Crocs on 12 of the 15 factors compared between the two stocks.
Crocs Company Profile
Crocs, Inc. is engaged in the design, development, manufacturing, marketing, distribution and sale of casual lifestyle footwear and accessories for men, women, and children. The Company’s segments include Americas, Asia Pacific and Europe. Its products include footwear and accessories that utilize its closed-cell resin, called Croslite, as well as casual lifestyle footwear that use a range of materials. Its Croslite material enables the Company to produce non-marking, and odor-resistant footwear. As of December 31, 2016, the Company sold its products in over 90 countries through domestic and international retailers and distributors, and directly to consumers through its company-operated retail stores, outlets, e-commerce store sites and kiosks. The Company’s sales channels include wholesale, which includes distributors, Crocs owned retail and Crocs e-commerce.
Caleres Company Profile
Caleres, Inc. is a global footwear retailer and wholesaler. The Company is engaged in the operation of retail shoe stores and e-commerce Websites, as well as the design, sourcing and marketing of footwear for women and men. The Company operates through two segments: Famous Footwear and Brand Portfolio. The Company’s Famous Footwear segment includes its Famous Footwear stores and Famous.com. Its Famous Footwear stores offer a range of athletic, casual and dress shoes for the entire family. The Company’s Brand Portfolio segment offers retailers and consumers a portfolio of brands from its Healthy Living and Contemporary Fashion platforms by designing, sourcing and marketing branded footwear for women and men at a range of price points. Its Brand Portfolio segment sells footwear on a wholesale basis to retailers. The Brand Portfolio segment also sells footwear through its branded retail stores and e-commerce businesses.
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