Analyzing Capri (NYSE:CPRI) and Rocky Brands (NASDAQ:RCKY)

Rocky Brands (NASDAQ:RCKY) and Capri (NYSE:CPRI) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, dividends, risk, institutional ownership, profitability, analyst recommendations and valuation.

Volatility & Risk

Rocky Brands has a beta of 2.38, indicating that its share price is 138% more volatile than the S&P 500. Comparatively, Capri has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500.

Valuation and Earnings

This table compares Rocky Brands and Capri”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rocky Brands	$521.30 million	0.77	$22.27 million	$4.55	11.76
Capri	$3.47 billion	0.63	$137.00 million	$1.77	11.93

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Rocky Brands and Capri, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rocky Brands	0	2	1	0	2.33
Capri	1	9	4	2	2.44

Rocky Brands presently has a consensus target price of $52.00, suggesting a potential downside of 2.86%. Capri has a consensus target price of $22.53, suggesting a potential upside of 6.68%. Given Capri’s stronger consensus rating and higher possible upside, analysts plainly believe Capri is more favorable than Rocky Brands.

Profitability

This table compares Rocky Brands and Capri’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rocky Brands	6.62%	14.08%	7.51%
Capri	6.12%	242.96%	7.54%

Insider and Institutional Ownership

75.1% of Rocky Brands shares are held by institutional investors. Comparatively, 84.3% of Capri shares are held by institutional investors. 7.6% of Rocky Brands shares are held by insiders. Comparatively, 2.6% of Capri shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Capri beats Rocky Brands on 10 of the 15 factors compared between the two stocks.

About Rocky Brands

Rocky Brands, Inc. is an American footwear and apparel company headquartered in Nelsonville, Ohio. Founded in 1932, the company develops, manufactures, and markets work, outdoor, western, hunting, and military footwear, along with related apparel and accessories. Its brand portfolio includes Rocky, Georgia Boot, Durango, and Lehigh Safety Shoe. Products are designed for applications such as construction, industrial work, farming, law enforcement, outdoor recreation, hunting, and everyday wear. The company offers work boots, western boots, outdoor footwear, safety shoes, hunting apparel, and related accessories.

About Capri

Capri Holdings Limited is a global fashion group focused on designing, marketing and distributing luxury apparel, footwear, handbags, accessories and related products. Its portfolio includes Michael Kors and Jimmy Choo, whose products are sold through company-operated stores, e-commerce platforms and wholesale partners. The company serves customers in markets around the world, including North America, Europe and Asia. Its brands offer a range of products, including ready-to-wear clothing, shoes, bags, watches, eyewear, jewelry and fragrances.