Shoe Carnival (NASDAQ:SCVL) and Designer Brands (NYSE:DBI) are both small-cap retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, risk, valuation and profitability.
Volatility and Risk
Shoe Carnival has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500. Comparatively, Designer Brands has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500.
91.1% of Shoe Carnival shares are held by institutional investors. Comparatively, 85.5% of Designer Brands shares are held by institutional investors. 22.7% of Shoe Carnival shares are held by insiders. Comparatively, 17.4% of Designer Brands shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Shoe Carnival pays an annual dividend of $0.32 per share and has a dividend yield of 1.0%. Designer Brands pays an annual dividend of $1.00 per share and has a dividend yield of 4.9%. Shoe Carnival pays out 13.1% of its earnings in the form of a dividend. Designer Brands pays out 60.2% 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. Shoe Carnival has raised its dividend for 6 consecutive years.
This is a breakdown of current recommendations for Shoe Carnival and Designer Brands, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Shoe Carnival presently has a consensus target price of $41.50, indicating a potential upside of 24.77%. Designer Brands has a consensus target price of $24.00, indicating a potential upside of 17.47%. Given Shoe Carnival’s higher probable upside, equities research analysts plainly believe Shoe Carnival is more favorable than Designer Brands.
This table compares Shoe Carnival and Designer Brands’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Shoe Carnival and Designer Brands’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Shoe Carnival||$1.03 billion||0.48||$38.13 million||$2.45||13.58|
|Designer Brands||$3.18 billion||0.50||-$20.47 million||$1.66||12.31|
Shoe Carnival has higher earnings, but lower revenue than Designer Brands. Designer Brands is trading at a lower price-to-earnings ratio than Shoe Carnival, indicating that it is currently the more affordable of the two stocks.
Shoe Carnival beats Designer Brands on 10 of the 18 factors compared between the two stocks.
About Shoe Carnival
Shoe Carnival, Inc., together with its subsidiaries, operates as a family footwear retailer in the United States. The company offers various dress, casual, and athletic footwear products for men, women, and children; and accessories, such as socks, belts, shoe care items, handbags, sport bags, backpacks, scarves, and wallets. As of February 2, 2019, it operated 397 stores in 35 states and Puerto Rico. The company also sells its products through online shopping at shoecarnival.com. Shoe Carnival, Inc. was founded in 1978 and is based in Evansville, Indiana.
About Designer Brands
Designer Brands Inc. designs, producers, and retails footwear and accessories for women, men, and kids primarily in North America. It operates through three segments: The U.S. Retail, the Canada Retail, and the Brand Portfolio. The company also provides handbags, hosiery, jewelry, and other accessories. The company offers its products under the Vince Camuto, Louise et Cie, Sole Society, CC Corso Como, Enzo Angiolini, Jessica Simpson, Lucky, and other brands. It operates vincecamuto.com and solesociety.com e-commerce sites. As of March 19, 2019, it operated a portfolio of retail concepts in approximately 1,000 locations under the DSW Designer Shoe Warehouse, The Shoe Company, and Shoe Warehouse banners. Designer Brands Inc. is based in Columbus, Ohio.
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