Zalando (OTCMKTS:ZLNDY – Get Free Report) and Deckers Outdoor (NYSE:DECK – Get Free Report) are both retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, valuation, earnings and profitability.
Institutional & Insider Ownership
97.8% of Deckers Outdoor shares are owned by institutional investors. 0.4% of Deckers Outdoor shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Risk and Volatility
Zalando has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500. Comparatively, Deckers Outdoor has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Zalando | 1 | 3 | 2 | 1 | 2.43 |
| Deckers Outdoor | 2 | 13 | 9 | 0 | 2.29 |
Deckers Outdoor has a consensus target price of $121.11, suggesting a potential upside of 14.05%. Given Deckers Outdoor’s higher probable upside, analysts clearly believe Deckers Outdoor is more favorable than Zalando.
Earnings & Valuation
This table compares Zalando and Deckers Outdoor”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Zalando | $13.97 billion | 0.57 | $243.36 million | $0.26 | 59.62 |
| Deckers Outdoor | $5.47 billion | 2.69 | $1.02 billion | $7.04 | 15.08 |
Deckers Outdoor has lower revenue, but higher earnings than Zalando. Deckers Outdoor is trading at a lower price-to-earnings ratio than Zalando, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Zalando and Deckers Outdoor’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Zalando | 0.89% | 4.15% | 1.32% |
| Deckers Outdoor | 18.90% | 41.19% | 26.84% |
Summary
Deckers Outdoor beats Zalando on 10 of the 15 factors compared between the two stocks.
About Zalando
Zalando SE operates an online platform for fashion and lifestyle products. The company operates through Fashion Store and Offprice segments. It provides shoes, apparel, accessories, and beauty products with free delivery and returns, as well as various payment options. The company also sells its products through Lounge by Zalando; and brick-and-mortar outlet stores. It operates in Germany, Austria, Switzerland, Belgium, Croatia, the Czech Republic, Denmark, Estonia, Finland, Hungary, France, Ireland, Italy, Latvia, Lithuania, Luxembourg, the Netherlands, Norway, Poland, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom. The company was founded in 2008 and is headquartered in Berlin, Germany.
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.
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