Steven Madden (NASDAQ:SHOO – Get Free Report) and G-III Apparel Group (NASDAQ:GIII – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.
Profitability
This table compares Steven Madden and G-III Apparel Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Steven Madden | 5.23% | 13.85% | 6.67% |
| G-III Apparel Group | 4.75% | 5.53% | 3.71% |
Dividends
Steven Madden pays an annual dividend of $0.84 per share and has a dividend yield of 1.8%. G-III Apparel Group pays an annual dividend of $0.40 per share and has a dividend yield of 1.2%. Steven Madden pays out 42.2% of its earnings in the form of a dividend. G-III Apparel Group pays out 13.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Institutional & Insider Ownership
99.9% of Steven Madden shares are owned by institutional investors. Comparatively, 92.1% of G-III Apparel Group shares are owned by institutional investors. 2.2% of Steven Madden shares are owned by company insiders. Comparatively, 15.0% of G-III Apparel Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Steven Madden and G-III Apparel Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Steven Madden | 1 | 3 | 5 | 1 | 2.60 |
| G-III Apparel Group | 0 | 4 | 2 | 0 | 2.33 |
Steven Madden currently has a consensus price target of $52.30, suggesting a potential upside of 11.32%. G-III Apparel Group has a consensus price target of $34.75, suggesting a potential upside of 4.86%. Given Steven Madden’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Steven Madden is more favorable than G-III Apparel Group.
Volatility & Risk
Steven Madden has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500. Comparatively, G-III Apparel Group has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500.
Valuation and Earnings
This table compares Steven Madden and G-III Apparel Group”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Steven Madden | $2.52 billion | 1.36 | $44.66 million | $1.99 | 23.61 |
| G-III Apparel Group | $2.96 billion | 0.48 | $67.35 million | $3.04 | 10.90 |
G-III Apparel Group has higher revenue and earnings than Steven Madden. G-III Apparel Group is trading at a lower price-to-earnings ratio than Steven Madden, indicating that it is currently the more affordable of the two stocks.
Summary
Steven Madden beats G-III Apparel Group on 11 of the 17 factors compared between the two stocks.
About Steven Madden
Steven Madden, Ltd. designs, sources, and markets fashion-forward branded and private label footwear, accessories, and apparel in the United States and internationally. It operates through Wholesale Footwear, Wholesale Accessories/Apparel, Direct-to- Consumer, and Licensing segments. The Wholesale Footwear segment designs, sources, and markets various products, including dress shoes, boots, booties, fashion sneakers, sandals, and casual shoes under the Steve Madden, Dolce Vita, Betsey Johnson, Blondo, GREATS, and Anne Klein brands. The Wholesale Accessories/Apparel segment offers handbags, apparel, small leather goods, belts, soft accessories, fashion scarves, wraps, gifting, and other accessories under the Steve Madden, Anne Klein, Betsey Johnson, and Dolce Vita brands. The Direct-to-Consumer segment operates Steve Madden and Dolce Vita full-price retail stores, Steve Madden outlet stores and concessions, and digital e-commerce websites. The Licensing segment engages in the licensing of the Steve Madden and Betsey Johnson trademarks for the sale of select apparel, accessory, home categories, and other non-core products. In addition, the company distributes its products in the wholesale channel through department stores, mass merchants, off-price retailers, shoe chains, online retailers, national chains, specialty retailers, independent stores, and clubs. Further, it markets its products and services through digital brand marketing, social media and influencer marketing, experiential events, in-store and online promotions, and public relations. The company was incorporated in 1990 and is headquartered in Long Island City, New York.
About G-III Apparel Group
G-III Apparel Group, Ltd. designs, sources, and markets women's and men's apparel in the United States and internationally. The company operates through two segments, Wholesale Operations and Retail Operations. Its products include outerwear, dresses, sportswear, swimwear, women's suits, and women's performance wear; and women's handbags, footwear, small leather goods, cold weather accessories, and luggage. The company markets apparel and other products under the proprietary brands, including DKNY, Donna Karan, Karl Lagerfeld, Karl Lagerfeld Paris, Vilebrequin, G.H. Bass, Eliza J, Jessica Howard, Andrew Marc, Marc New York, Wilsons Leather, Sonia Rykiel, and G-III Sports by Carl Banks; and licensed brands, such as Calvin Klein, Tommy Hilfiger, Levi's, Guess?, Kenneth Cole, Cole Haan, Vince Camuto, Margaritaville, and Dockers. It has licenses with the National Football League, National Basketball Association, Major League Baseball, and National Hockey League, as well as approximately 150 U.S. colleges and universities. The company offers its products to department, specialty, and mass merchant retail stores. It also sells its products online. G-III Apparel Group, Ltd. was founded in 1956 and is based in New York, New York.
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