Rocky Brands (NASDAQ: RCKY) and Steve Madden (NASDAQ:SHOO) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, risk, analyst recommendations, earnings and institutional ownership.
This is a summary of recent recommendations and price targets for Rocky Brands and Steve Madden, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Rocky Brands currently has a consensus target price of $16.00, indicating a potential downside of 24.31%. Steve Madden has a consensus target price of $49.05, indicating a potential upside of 5.09%. Given Steve Madden’s stronger consensus rating and higher probable upside, analysts plainly believe Steve Madden is more favorable than Rocky Brands.
Rocky Brands pays an annual dividend of $0.44 per share and has a dividend yield of 2.1%. Steve Madden pays an annual dividend of $0.80 per share and has a dividend yield of 1.7%. Rocky Brands pays out 37.9% of its earnings in the form of a dividend. Steve Madden pays out 35.7% 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.
Valuation and Earnings
This table compares Rocky Brands and Steve Madden’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Rocky Brands||$253.20 million||0.62||$9.58 million||$1.16||18.22|
|Steve Madden||$1.55 billion||1.76||$117.94 million||$2.24||20.83|
Steve Madden has higher revenue and earnings than Rocky Brands. Rocky Brands is trading at a lower price-to-earnings ratio than Steve Madden, indicating that it is currently the more affordable of the two stocks.
This table compares Rocky Brands and Steve Madden’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
Rocky Brands has a beta of 0.32, meaning that its stock price is 68% less volatile than the S&P 500. Comparatively, Steve Madden has a beta of 0.47, meaning that its stock price is 53% less volatile than the S&P 500.
Institutional and Insider Ownership
58.8% of Rocky Brands shares are held by institutional investors. Comparatively, 96.0% of Steve Madden shares are held by institutional investors. 8.5% of Rocky Brands shares are held by company insiders. Comparatively, 1.8% of Steve Madden shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Steve Madden beats Rocky Brands on 14 of the 16 factors compared between the two stocks.
Rocky Brands Company Profile
Rocky Brands, Inc. is a designer, manufacturer and marketer of footwear and apparel marketed under a portfolio of brand names, including Rocky, Georgia Boot, Durango, Lehigh and the licensed brand Michelin. The Company operates its business through three segments: wholesale, retail and military. In its wholesale segment, the Company distributes its products through a range of distribution channels representing over 10,000 retail store locations in the United States and Canada, as well as in other international markets. Its wholesale channels vary by product line and include sporting goods stores, outdoor retailers, independent shoe retailers, hardware stores, catalogs, mass merchants and uniform stores. In its retail segment, the Company sells its products directly to consumers through its consumer and business direct Websites and its Rocky outlet store. In its military segment, the Company sells footwear under the Rocky label to the United States military.
Steve Madden Company Profile
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.
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