Comparing Crocs (CROX) and Deckers Outdoor Corporation (DECK)
Crocs (NASDAQ: CROX) and Deckers Outdoor Corporation (NYSE:DECK) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitabiliy, dividends and analyst recommendations.
Earnings and Valuation
This table compares Crocs and Deckers Outdoor Corporation’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Crocs||$1.03 billion||0.56||$32.99 million||($0.46)||-16.93|
|Deckers Outdoor Corporation||$1.79 billion||1.18||$204.24 million||$0.15||441.83|
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.
Institutional and Insider Ownership
91.0% of Crocs shares are owned by institutional investors. 1.0% of Crocs shares are owned by company insiders. Comparatively, 1.9% of Deckers Outdoor Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This table compares Crocs and Deckers Outdoor Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Deckers Outdoor Corporation||0.32%||12.48%||8.63%|
This is a breakdown of recent ratings and target prices for Crocs and Deckers Outdoor Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Deckers Outdoor Corporation||0||11||5||0||2.31|
Crocs currently has a consensus target price of $8.20, indicating a potential upside of 5.26%. Deckers Outdoor Corporation has a consensus target price of $64.08, indicating a potential downside of 3.31%. Given Crocs’ higher possible upside, equities research analysts clearly believe Crocs is more favorable than Deckers Outdoor Corporation.
Risk and Volatility
Crocs has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500. Comparatively, Deckers Outdoor Corporation has a beta of 1.28, suggesting that its stock price is 28% more volatile than the S&P 500.
Deckers Outdoor Corporation beats Crocs on 11 of the 13 factors compared between the two stocks.
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.
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.
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