Boot Barn (NYSE:BOOT) and Valvoline (NYSE:VVV) Financial Survey

Valvoline (NYSE:VVV) and Boot Barn (NYSE:BOOT) are both mid-cap consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.

Risk & Volatility

Valvoline has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500. Comparatively, Boot Barn has a beta of 1.7, indicating that its share price is 70% more volatile than the S&P 500.

Insider & Institutional Ownership

96.1% of Valvoline shares are held by institutional investors. 0.7% of Valvoline shares are held by company insiders. Comparatively, 0.7% of Boot Barn shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Valvoline and Boot Barn”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Valvoline	$1.71 billion	2.16	$210.70 million	$0.80	36.15
Boot Barn	$2.34 billion	1.59	$225.88 million	$7.90	15.59

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Valvoline	5.17%	65.12%	7.11%
Boot Barn	10.35%	18.78%	10.03%

Analyst Ratings

This is a summary of current recommendations and price targets for Valvoline and Boot Barn, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Valvoline	0	5	12	0	2.71
Boot Barn	0	1	11	1	3.00

Valvoline presently has a consensus price target of $43.06, suggesting a potential upside of 48.89%. Boot Barn has a consensus price target of $219.55, suggesting a potential upside of 78.25%. Given Boot Barn’s stronger consensus rating and higher probable upside, analysts clearly believe Boot Barn is more favorable than Valvoline.

Summary

Boot Barn beats Valvoline on 10 of the 15 factors compared between the two stocks.

About Valvoline

Valvoline Inc. engages in the operation and franchising of vehicle service centers and retail stores in the United States and Canada. The company, through its service centers, provides fluid exchange for motor oil, transmission and differential fluid, and coolant; parts replacement for batteries, filters, wiper blades, and belts; and safety services, such as tire inflation and rotation, bulbs, and safety checks. It offers its services for passenger cars, hybrid and battery electric vehicles, and light and medium duty vehicles. The company was founded in 1866 and is headquartered in Lexington, Kentucky.

About Boot Barn

Boot Barn Holdings, Inc., a lifestyle retail chain, operates specialty retail stores in the United States. The company's specialty retail stores offer western and work-related footwear, apparel, and accessories for men, women, and kids. It offers boots, shirts, jackets, hats, belts and belt buckles, handbags, western-style jewelry, rugged footwear, outerwear, overalls, denim, and flame-resistant and high-visibility clothing. The company also provides gifts and home merchandise. The company also sells its products through e-commerce websites, including bootbarn.com; sheplers.com; and countryoutfitter.com. The company was formerly known as WW Top Investment Corporation and changed its name to Boot Barn Holdings, Inc. in June 2014. Boot Barn Holdings, Inc. was founded in 1978 and is based in Irvine, California.