Birkenstock (NYSE:BIRK) and Deckers Outdoor (NYSE:DECK) Head-To-Head Comparison

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

Institutional and Insider Ownership

19.9% of Birkenstock shares are held by institutional investors. Comparatively, 97.8% of Deckers Outdoor shares are held by institutional investors. 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 is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Birkenstock and Deckers Outdoor, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Birkenstock	1	5	13	0	2.63
Deckers Outdoor	4	11	10	0	2.24

Birkenstock presently has a consensus target price of $51.91, suggesting a potential upside of 39.44%. Deckers Outdoor has a consensus target price of $105.81, suggesting a potential upside of 18.65%. Given Birkenstock’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Birkenstock is more favorable than Deckers Outdoor.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Birkenstock	14.82%	13.36%	7.21%
Deckers Outdoor	19.18%	42.42%	26.45%

Risk & Volatility

Birkenstock has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500. Comparatively, Deckers Outdoor has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500.

Earnings and Valuation

This table compares Birkenstock and Deckers Outdoor”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Birkenstock	$2.32 billion	2.86	$385.46 million	$2.13	17.48
Deckers Outdoor	$5.47 billion	2.18	$1.02 billion	$7.54	11.83

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

Summary

Deckers Outdoor beats Birkenstock on 8 of the 14 factors compared between the two stocks.

About Birkenstock

Birkenstock Holding plc manufactures and sells footwear products. It also offers sandals, shoes, closed-toe silhouettes, skincare products, and accessories. The company sells its products through e-commerce sites and a network of owned retail stores, as well as business-to-business channels. It operates in the United States, Brazil, Canada, Mexico, Europe, APMA, and internationally. Birkenstock Holding plc was founded in 1774 and is based in London, the United Kingdom. Birkenstock Holding plc is a subsidiary of BK LC Lux MidCo S.à r.l.

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.