Deckers Outdoor (NYSE:DECK – Get Free Report) and Birkenstock (NYSE:BIRK – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, institutional ownership, risk and dividends.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Deckers Outdoor and Birkenstock, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Deckers Outdoor | 4 | 11 | 10 | 0 | 2.24 |
| Birkenstock | 1 | 5 | 13 | 0 | 2.63 |
Deckers Outdoor presently has a consensus target price of $105.81, suggesting a potential upside of 18.65%. Birkenstock has a consensus target price of $51.91, suggesting a potential upside of 39.44%. Given Birkenstock’s stronger consensus rating and higher possible upside, analysts plainly believe Birkenstock is more favorable than Deckers Outdoor.
Institutional & Insider Ownership
97.8% of Deckers Outdoor shares are owned by institutional investors. Comparatively, 19.9% of Birkenstock shares are owned by institutional investors. 0.4% of Deckers Outdoor shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Profitability
This table compares Deckers Outdoor and Birkenstock’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% |
| Birkenstock | 14.82% | 13.36% | 7.21% |
Volatility & Risk
Deckers Outdoor has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500. Comparatively, Birkenstock has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500.
Valuation & Earnings
This table compares Deckers Outdoor and Birkenstock”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Deckers Outdoor | $5.47 billion | 2.18 | $1.02 billion | $7.54 | 11.83 |
| Birkenstock | $2.32 billion | 2.86 | $385.46 million | $2.13 | 17.48 |
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 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 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.
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