Head to Head Comparison: Steven Madden (NASDAQ:SHOO) vs. Deckers Outdoor (NYSE:DECK)

Deckers Outdoor (NYSE:DECK) and Steven Madden (NASDAQ:SHOO) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, profitability, earnings, dividends and valuation.

Valuation and Earnings

This table compares Deckers Outdoor and Steven Madden”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Deckers Outdoor	$5.58 billion	2.08	$1.02 billion	$7.54	11.50
Steven Madden	$2.52 billion	1.22	$44.66 million	$2.42	17.36

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

Insider and Institutional Ownership

97.8% of Deckers Outdoor shares are owned by institutional investors. Comparatively, 99.9% of Steven Madden shares are owned by institutional investors. 0.4% of Deckers Outdoor shares are owned by insiders. Comparatively, 2.2% of Steven Madden shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Deckers Outdoor	19.18%	42.42%	26.45%
Steven Madden	6.16%	16.19%	8.12%

Volatility and Risk

Deckers Outdoor has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500. Comparatively, Steven Madden has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Deckers Outdoor and Steven Madden, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Deckers Outdoor	4	12	10	0	2.23
Steven Madden	0	4	5	1	2.70

Deckers Outdoor currently has a consensus target price of $103.86, indicating a potential upside of 19.75%. Steven Madden has a consensus target price of $51.70, indicating a potential upside of 23.10%. Given Steven Madden’s stronger consensus rating and higher possible upside, analysts clearly believe Steven Madden is more favorable than Deckers Outdoor.

Summary

Deckers Outdoor beats Steven Madden on 8 of the 15 factors compared between the two stocks.

About Deckers Outdoor

Deckers Outdoor Corporation designs, markets and distributes footwear, apparel and accessories through a portfolio of consumer brands. Its best-known brands include UGG, HOKA and Teva, which serve customers seeking products for lifestyle, performance and outdoor use. Founded in 1973 in California, Deckers began as a maker of sandals. The company now sells its products worldwide through wholesale partners as well as its own retail stores and e-commerce channels, serving markets across the Americas, Europe, the Middle East and Africa, and Asia-Pacific.

About Steven Madden

Steven Madden, Ltd. designs, sources and markets footwear, handbags, apparel and other fashion accessories. Its portfolio includes the Steve Madden brand as well as brands such as Dolce Vita and Betsey Johnson. The company sells through wholesale customers and its own retail and e-commerce channels, and also licenses its brands to third parties. Its business serves customers in the United States and international markets. Founded by Steve Madden in 1990, the company is headquartered in Long Island City, New York.