Head-To-Head Analysis: Deckers Outdoor (NYSE:DECK) vs. Vera Bradley (NASDAQ:VRA)

Vera Bradley (NASDAQ:VRA) and Deckers Outdoor (NYSE:DECK) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, institutional ownership, earnings, profitability, risk and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings for Vera Bradley and Deckers Outdoor, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vera Bradley	1	0	0	1	2.50
Deckers Outdoor	4	11	10	0	2.24

Deckers Outdoor has a consensus price target of $104.57, suggesting a potential upside of 20.40%. Given Deckers Outdoor’s higher possible upside, analysts clearly believe Deckers Outdoor is more favorable than Vera Bradley.

Institutional and Insider Ownership

59.9% of Vera Bradley shares are held by institutional investors. Comparatively, 97.8% of Deckers Outdoor shares are held by institutional investors. 14.3% of Vera Bradley shares are held by company insiders. Comparatively, 0.4% of Deckers Outdoor shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Vera Bradley	-3.66%	-3.80%	-2.11%
Deckers Outdoor	19.18%	42.42%	26.45%

Volatility & Risk

Vera Bradley has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500. Comparatively, Deckers Outdoor has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500.

Earnings & Valuation

This table compares Vera Bradley and Deckers Outdoor”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vera Bradley	$269.65 million	0.75	-$47.84 million	($0.37)	-19.05
Deckers Outdoor	$5.58 billion	2.08	$1.02 billion	$7.54	11.52

Deckers Outdoor has higher revenue and earnings than Vera Bradley. Vera Bradley is trading at a lower price-to-earnings ratio than Deckers Outdoor, indicating that it is currently the more affordable of the two stocks.

Summary

Deckers Outdoor beats Vera Bradley on 11 of the 15 factors compared between the two stocks.

About Vera Bradley

Vera Bradley, Inc., together with its subsidiaries, designs, manufactures, and sells women’s handbags, luggage and travel items, fashion and home accessories, and gifts. It operates through three segments: Vera Bradley Direct, Vera Bradley Indirect, and Pura Vida. The company offers bag products, such as totes, crossbodies, satchels, clutches, backpacks, baby bags, and lunch bags; accessories, including ID holders, lanyards, wallets, wristlets, eyewear, scarves, hair accessories, and various technology accessories; bracelets, rings, and necklaces under Pura Vida brand name; and travel products consist of rolling luggage, cosmetics, and travel and packing accessories, as well as travel bags comprising duffel and weekend bags. It also provides home products that include throw blankets, beach towels, and comforters, as well as items, such as mugs and tumblers; apparel/footwear comprising sleepwear, footwear, outerwear, tees and hoodies, and socks; and stationery and merchandising products, as well as freight, licensing, and gift card breakage services. The company sells its Vera Bradley branded products through its full-line and outlet stores in the United States; verabradley.com, an online outlet site; its annual outlet sale in Fort Wayne, Indiana. It sells its Pura Vida branded products through wholesale retailers and Pura Vida websites, including www.puravidabracelets.com, www.puravidabracelets.eu, and www.puravidabracelets.ca; and Vera Bradley Indirect branded products to specialty retail locations, department stores, national accounts, third party e-commerce sites, third-party inventory liquidators, and through licensing agreements. Vera Bradley, Inc. was incorporated in 1982 and is headquartered in Roanoke, Indiana.

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.