Analyzing Caleres (NYSE:CAL) and Xtep International (OTCMKTS:XTEPY)

Caleres (NYSE:CAL) and Xtep International (OTCMKTS:XTEPY) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, dividends, earnings, institutional ownership and profitability.

Profitability

This table compares Caleres and Xtep International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Caleres	-0.24%	6.49%	1.98%
Xtep International	N/A	N/A	N/A

Earnings & Valuation

This table compares Caleres and Xtep International”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Caleres	$2.76 billion	0.14	-$6.69 million	($0.22)	-51.82
Xtep International	$1.97 billion	0.72	$190.79 million	N/A	N/A

Xtep International has lower revenue, but higher earnings than Caleres.

Institutional & Insider Ownership

98.4% of Caleres shares are held by institutional investors. 3.8% of Caleres shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

Caleres has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500. Comparatively, Xtep International has a beta of 0.2, suggesting that its share price is 80% less volatile than the S&P 500.

Dividends

Caleres pays an annual dividend of $0.28 per share and has a dividend yield of 2.5%. Xtep International pays an annual dividend of $2.24 per share and has a dividend yield of 4.4%. Caleres pays out -127.3% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent recommendations for Caleres and Xtep International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Caleres	1	2	0	0	1.67
Xtep International	0	1	0	0	2.00

Caleres presently has a consensus target price of $14.00, indicating a potential upside of 22.81%. Given Caleres’ higher possible upside, equities analysts plainly believe Caleres is more favorable than Xtep International.

Summary

Caleres beats Xtep International on 8 of the 13 factors compared between the two stocks.

About Caleres

Caleres, Inc. engages in the retail and wholesale of footwear business in the United States, Canada, East Asia, and internationally. It operates through Famous Footwear and Brand Portfolio segments. The company offers licensed, branded, and private-label athletic, casual, and dress footwear products. The company provides brand name athletic, casual, and dress shoes, including Nike, Skechers, adidas, Vans, Crocs, Converse, Puma, Birkenstock, New Balance, Under Armour, Dr. Martens, Asics, Timberland, Bearpaw, Skechers, HeyDude, Franco Sarto, Rykä, Vince, Bzees, Veronica Beard, and Zodiac brands, as well as company-owned and licensed brands, such as LifeStride, Dr. Scholl’s Shoes, Blowfish Malibu, and Naturalizer. The company also operates naturalizer.com, naturalizer.ca, vionicshoes.com, samedelman.com, samedelman.co.uk, allenedmonds.com, allenedmonds.ca, drschollsshoes.com, lifestride.com, francosarto.com, ryka.com, bzees.com, and zodiacshoes.com, as well as Vince.com, blowfishshoes.com, and veronicabeard.com websites. In addition, it designs, sources, manufactures, and markets footwear to retail stores, such as online retailers, national chains, department stores, mass merchandisers, and independent retailers. Further, the company wholesales men’s footwear, apparel, leather goods, and accessories under the Allen Edmonds brand; footwear for women under LifeStride brand; Italian footwear Franco Sarto brand; athletic footwear for women under the Rykä brand; women’s shoe collection under the Vince brand; women’s footwear under the Bzees brand; and women’s footwear collection under Veronica Beard brand. The company was formerly known as Brown Shoe Company, Inc. and changed its name to Caleres, Inc. in May 2015. Caleres, Inc. was founded in 1878 and is headquartered in Saint Louis, Missouri.

About Xtep International

Xtep International Holdings Limited engages in the design, development, manufacture, sale, and marketing and brand management of sports footwear, apparel, and accessories. The company sells its products primarily under the XTEP brand, as well as Palladium, K-Swiss, Saucony, and Merrell brand names. It is also involved in the trading of sportswear products. As of March 18, 2021, the company managed an extensive distribution network with exclusive distributors that operated approximately 6,000 stores covering 31 provinces, autonomous regions, and municipalities in the People's Republic of China and internationally. It also offers its products online. The company was founded in 1999 and is headquartered in Xiamen, the People's Republic of China. Xtep International Holdings Limited is a subsidiary of Group Success Investments Limited.