Financial Review: Shoe Carnival (NASDAQ:SCVL) versus Deckers Outdoor (NYSE:DECK)

Shoe Carnival (NASDAQ:SCVL) and Deckers Outdoor (NYSE:DECK) are both retail/wholesale companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, earnings and analyst recommendations.

Institutional & Insider Ownership

66.1% of Shoe Carnival shares are held by institutional investors. Comparatively, 97.8% of Deckers Outdoor shares are held by institutional investors. 35.5% of Shoe Carnival shares are held by insiders. Comparatively, 0.4% of Deckers Outdoor shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Shoe Carnival has a beta of 1.41, suggesting that its share price is 41% more volatile than the S&P 500. Comparatively, Deckers Outdoor has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500.

Profitability

This table compares Shoe Carnival and Deckers Outdoor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shoe Carnival	5.58%	10.43%	5.92%
Deckers Outdoor	19.49%	41.17%	27.30%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Shoe Carnival and Deckers Outdoor, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shoe Carnival	0	0	1	0	3.00
Deckers Outdoor	0	13	10	1	2.50

Shoe Carnival presently has a consensus price target of $51.00, indicating a potential upside of 169.84%. Deckers Outdoor has a consensus price target of $134.68, indicating a potential upside of 35.55%. Given Shoe Carnival’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Shoe Carnival is more favorable than Deckers Outdoor.

Earnings and Valuation

This table compares Shoe Carnival and Deckers Outdoor”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shoe Carnival	$1.20 billion	0.43	$73.77 million	$2.39	7.91
Deckers Outdoor	$4.99 billion	2.98	$966.09 million	$6.34	15.67

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

Summary

Deckers Outdoor beats Shoe Carnival on 11 of the 15 factors compared between the two stocks.

About Shoe Carnival

Shoe Carnival, Inc., together with its subsidiaries, operates as a family footwear retailer in the United States. The company offers range of dress, casual, work, and athletic shoes, as well as sandals and boots for men, women, and children; and various accessories. The company also operates stores, and sells its products through online shopping at shoecarnival.com, as well as through mobile app. Shoe Carnival, Inc. was founded in 1978 and is headquartered in Evansville, Indiana.

About Deckers Outdoor

Deckers Outdoor Corporation, together with its subsidiaries, designs, markets, and distributes footwear, apparel, and accessories for casual lifestyle use and high-performance activities in the United States and internationally. The company offers premium footwear, apparel, and accessories under the UGG brand name; footwear, apparel, and accessories for ultra-runners and athletes under the HOKA brand name; and sandals, shoes, and boots under the Teva brand name. It also provides relaxed casual shoes and sandals under the Sanuk brand name; casual footwear fashion line under the Koolaburra brand name; and footwear under the AHNU brand name. The company sells its products through domestic and international retailers; international distributors; and directly to its consumers through its direct-to-consumer business, which includes e-commerce websites and retail stores. Deckers Outdoor Corporation was founded in 1973 and is headquartered in Goleta, California.