Boot Barn Holdings (NYSE: BOOT) and Shoe Carnival (NASDAQ:SCVL) are both small-cap retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.

Institutional and Insider Ownership

62.2% of Shoe Carnival shares are owned by institutional investors. 4.6% of Boot Barn Holdings shares are owned by company insiders. Comparatively, 28.5% of Shoe Carnival shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Dividends

Shoe Carnival pays an annual dividend of $0.30 per share and has a dividend yield of 1.9%. Boot Barn Holdings does not pay a dividend. Shoe Carnival pays out 25.2% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Boot Barn Holdings and Shoe Carnival’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Boot Barn Holdings $635.78 million 0.34 $56.20 million $0.54 14.94
Shoe Carnival $994.02 million 0.27 $62.91 million $1.19 13.26

Shoe Carnival has higher revenue and earnings than Boot Barn Holdings. Shoe Carnival is trading at a lower price-to-earnings ratio than Boot Barn Holdings, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Boot Barn Holdings has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500. Comparatively, Shoe Carnival has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and target prices for Boot Barn Holdings and Shoe Carnival, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Boot Barn Holdings 0 2 5 0 2.71
Shoe Carnival 0 5 2 0 2.29

Boot Barn Holdings currently has a consensus price target of $10.43, suggesting a potential upside of 29.23%. Shoe Carnival has a consensus price target of $22.50, suggesting a potential upside of 42.59%. Given Shoe Carnival’s higher possible upside, analysts clearly believe Shoe Carnival is more favorable than Boot Barn Holdings.

Profitability

This table compares Boot Barn Holdings and Shoe Carnival’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Boot Barn Holdings 2.26% 8.58% 2.66%
Shoe Carnival 2.12% 7.27% 4.91%

About Boot Barn Holdings

Boot Barn Holdings, Inc. is a lifestyle retailer of western and work-related footwear, apparel and accessories for men, women and children. The Company’s stores are located in or near neighborhood shopping centers with trade areas of approximately five or more miles, and it has opened stores in malls and outlet center locations. The Company’s stores average an area of approximately 11,490 square feet and feature an assortment of brands and styles. It also carries assortments of denim, western shirts, cowboy hats, belts and belt buckles, western-style jewelry and accessories. The Company’s western assortment includes various brands, such as Ariat, Dan Post, Justin, Levi Strauss, Lucchese, Miss Me, Montana Silversmiths, Resistol and Wrangler. Its work assortment includes rugged footwear, outerwear, overalls, denim and shirts. Its other brands include Carhartt, Georgia, Timberland Pro and Wolverine. As of March 26, 2016, the Company operated 208 stores in 29 states.

About Shoe Carnival

Shoe Carnival, Inc. is a family footwear retailer. The Company’s primary activity is the sale of footwear and related products through its retail stores in approximately 30 states within the continental United States and in Puerto Rico. It also offers online shopping on its e-commerce site at www.shoecarnival.com. Its products assortment includes dress and casual shoes, sandals, boots and an assortment of athletic for the entire family in four general categories-women’s, men’s, children’s and athletics. In addition to footwear, its stores carry selected accessory items, such as socks, belts, shoe care items, handbags, sport bags, backpacks, jewelry, scarves and wallets. It classifies athletic shoes by functionality, such as running, basketball or fitness shoes. As of January 28, 2017, it operated 415 stores in 35 states and Puerto Rico and offered online shopping at www.shoecarnival.com.

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