Deckers Outdoor Corporation (NYSE: DECK) and Crocs (NASDAQ:CROX) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, valuation, profitabiliy, dividends and institutional ownership.
Institutional and Insider Ownership
90.2% of Crocs shares are held by institutional investors. 1.9% of Deckers Outdoor Corporation shares are held by company insiders. Comparatively, 1.0% of Crocs shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Risk & Volatility
Deckers Outdoor Corporation has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500. Comparatively, Crocs has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500.
Profitability
This table compares Deckers Outdoor Corporation and Crocs’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Deckers Outdoor Corporation | 1.23% | 14.25% | 10.01% |
| Crocs | -1.52% | -4.89% | -2.00% |
Analyst Ratings
This is a summary of current ratings for Deckers Outdoor Corporation and Crocs, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Deckers Outdoor Corporation | 0 | 10 | 5 | 0 | 2.33 |
| Crocs | 0 | 5 | 0 | 0 | 2.00 |
Deckers Outdoor Corporation currently has a consensus price target of $66.15, suggesting a potential upside of 3.20%. Crocs has a consensus price target of $7.50, suggesting a potential downside of 5.54%. Given Deckers Outdoor Corporation’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Deckers Outdoor Corporation is more favorable than Crocs.
Earnings and Valuation
This table compares Deckers Outdoor Corporation and Crocs’ revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Deckers Outdoor Corporation | $1.83 billion | 1.12 | $226.65 million | $0.67 | 95.67 |
| Crocs | $1.03 billion | 0.57 | $32.99 million | ($0.46) | -17.26 |
Deckers Outdoor Corporation has higher revenue and earnings than Crocs. Crocs is trading at a lower price-to-earnings ratio than Deckers Outdoor Corporation, indicating that it is currently the more affordable of the two stocks.
Summary
Deckers Outdoor Corporation beats Crocs on 12 of the 13 factors compared between the two stocks.
About Deckers Outdoor Corporation
Deckers Outdoor Corporation is engaged in designing, marketing and distributing footwear, apparel and accessories for both everyday casual lifestyle use and high performance activities. The Company’s segments include operations of its brands, such as UGG, Teva, Sanuk and other brands; wholesale divisions, and Direct-to-Consumer (DTC) business, which includes E-Commerce business and retail store business. The Company sells accessories, such as handbags and loungewear, through domestic and international retailers, international distributors and directly to end user consumers both domestically and internationally, through its Websites, call centers and retail stores. The Company markets its products primarily under three brands: UGG, Teva and Sanuk. The Company’s other brands include Hoka One One (Hoka), Ahnu and Koolaburra by UGG (Koolaburra). It has a total of over 150 retail stores across the world.
About Crocs
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.
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