Steve Madden (NASDAQ: SHOO) and Skechers U.S.A. (NYSE:SKX) are both mid-cap consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.
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This is a summary of current recommendations and price targets for Steve Madden and Skechers U.S.A., as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Steve Madden presently has a consensus price target of $50.23, suggesting a potential upside of 2.15%. Skechers U.S.A. has a consensus price target of $42.44, suggesting a potential upside of 45.06%. Given Skechers U.S.A.’s stronger consensus rating and higher possible upside, analysts clearly believe Skechers U.S.A. is more favorable than Steve Madden.
Earnings and Valuation
This table compares Steve Madden and Skechers U.S.A.’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Steve Madden||$1.55 billion||1.86||$117.94 million||$2.24||21.95|
|Skechers U.S.A.||$4.16 billion||1.13||$179.19 million||$1.78||16.44|
Skechers U.S.A. has higher revenue and earnings than Steve Madden. Skechers U.S.A. is trading at a lower price-to-earnings ratio than Steve Madden, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Steve Madden has a beta of 0.43, indicating that its stock price is 57% less volatile than the S&P 500. Comparatively, Skechers U.S.A. has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500.
Steve Madden pays an annual dividend of $0.80 per share and has a dividend yield of 1.6%. Skechers U.S.A. does not pay a dividend. Steve Madden pays out 35.7% of its earnings in the form of a dividend.
Institutional and Insider Ownership
98.2% of Steve Madden shares are held by institutional investors. Comparatively, 73.6% of Skechers U.S.A. shares are held by institutional investors. 1.8% of Steve Madden shares are held by company insiders. Comparatively, 27.9% of Skechers U.S.A. shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This table compares Steve Madden and Skechers U.S.A.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Steve Madden beats Skechers U.S.A. on 9 of the 16 factors compared between the two stocks.
About Steve Madden
Steven Madden, Ltd. designs, sources, markets, and sells fashion-forward name brand and private label footwear for women, men, and children worldwide. Its Wholesale Footwear segment provides footwear under the Steve Madden Women's, Madden Girl, Steve Madden Men's, Madden, Madden NYC, Dolce Vita, DV by Dolce Vita, Mad Love, Steven by Steve Madden, Report, Superga, Betsey Johnson, Betseyville, Steve Madden Kids, FREEBIRD by Steven, Stevies, B Brian Atwood, Blondo, Kate Spade, and Avec Les Filles brands, as well as private label footwear. The company's Wholesale Accessories segment offers Big Buddha, Madden NYC, Betsey Johnson, Steve Madden, Steven by Steve Madden, Madden Girl, Cejon, B Brian Atwood, Luv Betsey, DKNY, and Donna Karan accessories brands; private label fashion handbags and accessories to department stores, mass merchants, value priced retailers, online retailers, and specialty stores; and cold weather accessories, fashion scarves, wraps, and other trend accessories primarily under Cejon, Steve Madden, Betsey Johnson, and Big Buddha brand names, as well as private labels to department stores and specialty stores. Its Retail segment operates Steve Madden, Steven, Superga, and International retail stores, as well as Steve Madden, Superga, Betsey Johnson, and Dolce Vita e-commerce Websites. As of December 31, 2017, the company owned and operated 206 retail stores. Its First Cost segment operates as a buying agent for footwear products under private labels for mass-market merchandisers, shoe chains, and other mid-tier retailers. The company's Licensing segment licenses its Steve Madden, Steven by Steve Madden, and Madden Girl trademarks. Steven Madden, Ltd. was founded in 1990 and is based in Long Island City, New York.
About Skechers U.S.A.
Skechers U.S.A., Inc. designs, develops, markets, and distributes footwear for men, women, and children; and performance footwear for men and women under the Skechers GO brand worldwide. It operates through three segments: Domestic Wholesale Sales, International Wholesale Sales, and Retail Sales. The company offers casual boots, shoes, and sandals for men; shoes, oxfords and slip-ons, lug outsole and fashion boots, and casual sandals for women; dress casuals, seasonal sandals and boots, classic and wide fit, and relaxed fit casuals for men and women; and casual athletic line for men and women under the Skechers USA brand. It also provides lightweight sport athletic lifestyle products, classic athletic-inspired styles, and sport sandals and boots under the Skechers Sport brand name; casual and sport styles sneakers, and sandals under the Skechers Active and Skechers Sport Active brand; and sneakers under Skecher Street brand for millennials, Gen Y's, and young women. In addition, the company offers classic espadrille, and vulcanized and sport footwear under the BOBS from Skechers name; casual, dress, and active styles, as well as boots and accessories for men under the Mark Nason name; technical footwear under the Skechers Performance brand for men and women, as well as under the YOU by Skechers name for women; and boots, shoes, high-tops, sneakers, and sandals for infants, toddlers, boys, and girls under the Skechers Kids name. Further, it provides men's and women's casuals, such as field boots, hikers, and athletic shoes under the Skechers Work name. The company sells its products through department and specialty stores, athletic and independent retailers, boutiques, and Internet retailers, as well as through its e-commerce Websites and own retail stores. As of March 1, 2018, it owned and operated 2,570 company-owned and third-party-owned retail stores. Skechers U.S.A., Inc. was founded in 1992 and is headquartered in Manhattan Beach, California.