Deckers Outdoor (NYSE:DECK) & Shoe Carnival (NASDAQ:SCVL) Head-To-Head Review

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Deckers Outdoor and Shoe Carnival, as reported by MarketBeat.com.

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

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

Valuation & Earnings

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

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

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.

Profitability

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

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

Risk & Volatility

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

Insider and Institutional Ownership

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

Summary

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

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.

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.