Contrasting Stein Mart (OTCMKTS:SMRTQ) & Shoe Carnival (NASDAQ:SHOE)

Shoe Carnival (NASDAQ:SHOE) and Stein Mart (OTCMKTS:SMRTQ) are both retail/wholesale companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.

Valuation & Earnings

This table compares Shoe Carnival and Stein Mart”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shoe Carnival	$1.14 billion	0.37	$52.27 million	$1.35	11.47
Stein Mart	N/A	N/A	N/A	N/A	N/A

Shoe Carnival has higher revenue and earnings than Stein Mart.

Institutional and Insider Ownership

66.0% of Shoe Carnival shares are held by institutional investors. 33.6% of Shoe Carnival shares are held by insiders. Comparatively, 39.4% of Stein Mart shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Shoe Carnival	3.31%	7.24%	4.19%
Stein Mart	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent recommendations for Shoe Carnival and Stein Mart, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shoe Carnival	0	2	0	1	2.67
Stein Mart	0	0	0	0	0.00

Shoe Carnival currently has a consensus price target of $22.00, indicating a potential upside of 42.12%. Given Shoe Carnival’s stronger consensus rating and higher probable upside, equities analysts plainly believe Shoe Carnival is more favorable than Stein Mart.

Summary

Shoe Carnival beats Stein Mart on 8 of the 9 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 Stein Mart

Stein Mart, Inc., a specialty omnichannel off-price retailer, offers designer and name-brand fashion apparels, home décor merchandise, accessories, and shoes at everyday discount prices in the United States. The company's stores also provides endless aisle, a mobile technology to locate products; a SMart Rewards loyalty program; co-branded and private label credit card programs; and electronic gift cards. As of June 3, 2020, it operated 281 stores in 30 states. The company also sells its products through an online retail selling site. Stein Mart, Inc. was founded in 1908 and is headquartered in Jacksonville, Florida. On August 12, 2020, Stein Mart, Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Middle District of Florida.