Columbia Sportswear (NASDAQ: COLM) and Steven Madden (NASDAQ:SHOO) are both mid-cap consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, valuation, earnings, profitability, analyst recommendations, dividends and institutional ownership.
This table compares Columbia Sportswear and Steven Madden’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
38.9% of Columbia Sportswear shares are held by institutional investors. Comparatively, 95.5% of Steven Madden shares are held by institutional investors. 58.9% of Columbia Sportswear shares are held by company insiders. Comparatively, 2.1% of Steven Madden shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
This is a breakdown of recent ratings and recommmendations for Columbia Sportswear and Steven Madden, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Columbia Sportswear presently has a consensus target price of $76.50, indicating a potential downside of 1.40%. Steven Madden has a consensus target price of $49.05, indicating a potential upside of 6.62%. Given Steven Madden’s stronger consensus rating and higher possible upside, analysts clearly believe Steven Madden is more favorable than Columbia Sportswear.
Volatility and Risk
Columbia Sportswear has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500. Comparatively, Steven Madden has a beta of 0.45, indicating that its stock price is 55% less volatile than the S&P 500.
Columbia Sportswear pays an annual dividend of $0.88 per share and has a dividend yield of 1.1%. Steven Madden pays an annual dividend of $0.80 per share and has a dividend yield of 1.7%. Columbia Sportswear pays out 59.1% of its earnings in the form of a dividend. Steven Madden pays out 39.0% 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. Steven Madden is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation & Earnings
This table compares Columbia Sportswear and Steven Madden’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Columbia Sportswear||$2.47 billion||2.20||$105.12 million||$1.49||52.07|
|Steven Madden||$1.55 billion||1.75||$117.94 million||$2.05||22.44|
Steven Madden has lower revenue, but higher earnings than Columbia Sportswear. Steven Madden is trading at a lower price-to-earnings ratio than Columbia Sportswear, indicating that it is currently the more affordable of the two stocks.
Steven Madden beats Columbia Sportswear on 10 of the 15 factors compared between the two stocks.
Columbia Sportswear Company Profile
Columbia Sportswear Company is an apparel and footwear company. The Company designs, sources, markets and distributes outdoor lifestyle apparel, footwear, accessories and equipment under the Columbia, Mountain Hardwear, Sorel, prAna and other brands. Its geographic segments are the United States, Latin America and Asia Pacific (LAAP), Europe, Middle East and Africa (EMEA), and Canada. The Company develops and manages its merchandise in categories, including apparel, accessories and equipment, and footwear. It distributes its products through a mix of wholesale distribution channels, its own direct-to-consumer channels (retail stores and e-commerce), independent distributors and licensees. As of December 31, 2016, its products were sold in approximately 90 countries. In 59 of those countries, it sells to independent distributors to whom it has granted distribution rights. Contract manufacturers located outside the United States manufacture all of its products.
Steven Madden Company Profile
Steven Madden, Ltd. and its subsidiaries design, source, market and sell name brand and private label footwear for women, men and children, and name brand and private label fashion handbags and accessories. The Company operates through five segments: Wholesale Footwear, Wholesale Accessories, Retail, First Cost and Licensing. Its products are sold through its retail stores and e-commerce Websites within the United States, Canada, Mexico and South Africa, as well as department stores, specialty stores, luxury retailers, value priced retailers, national chains, merchants and catalog retailers. It provides merchandising support to its department store customers, including in-store fixtures and signage, supervision of displays and merchandising of its various product lines. Its brands include Madden Girl, Steve Madden Men’s, Madden, Steven, Stevies and Steve Madden Kids, Betsey Johnson, Superga, FREEBIRD by Steve, Report, Mad Love, Dolce Vita, Brian Atwood and Blondo.
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