Shoe Carnival (NASDAQ:SHOE) versus Oxford Industries (NYSE:OXM) Financial Contrast

Shoe Carnival (NASDAQ:SHOE) and Oxford Industries (NYSE:OXM) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, risk, analyst recommendations and institutional ownership.

Analyst Ratings

This is a summary of recent ratings and target prices for Shoe Carnival and Oxford Industries, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shoe Carnival	0	2	0	1	2.67
Oxford Industries	1	7	0	0	1.88

Shoe Carnival currently has a consensus price target of $22.00, indicating a potential upside of 63.08%. Oxford Industries has a consensus price target of $40.00, indicating a potential upside of 5.67%. Given Shoe Carnival’s stronger consensus rating and higher possible upside, equities analysts plainly believe Shoe Carnival is more favorable than Oxford Industries.

Risk and Volatility

Shoe Carnival has a beta of 1.43, indicating that its share price is 43% more volatile than the S&P 500. Comparatively, Oxford Industries has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500.

Dividends

Shoe Carnival pays an annual dividend of $0.68 per share and has a dividend yield of 5.0%. Oxford Industries pays an annual dividend of $2.80 per share and has a dividend yield of 7.4%. Shoe Carnival pays out 50.4% of its earnings in the form of a dividend. Oxford Industries pays out -106.1% 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 increased its dividend for 14 consecutive years and Oxford Industries has increased its dividend for 5 consecutive years. Oxford Industries is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

66.1% of Shoe Carnival shares are held by institutional investors. Comparatively, 91.2% of Oxford Industries shares are held by institutional investors. 33.6% of Shoe Carnival shares are held by company insiders. Comparatively, 6.5% of Oxford Industries shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Shoe Carnival and Oxford Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shoe Carnival	3.31%	7.24%	4.19%
Oxford Industries	-2.65%	4.55%	1.87%

Valuation and Earnings

This table compares Shoe Carnival and Oxford Industries”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shoe Carnival	$1.13 billion	0.32	$52.27 million	$1.35	9.99
Oxford Industries	$1.48 billion	0.38	-$27.89 million	($2.64)	-14.34

Shoe Carnival has higher earnings, but lower revenue than Oxford Industries. Oxford Industries is trading at a lower price-to-earnings ratio than Shoe Carnival, indicating that it is currently the more affordable of the two stocks.

Summary

Shoe Carnival beats Oxford Industries on 12 of the 17 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 range of dress, casual, work, and athletic shoes, as well as sandals and boots for men, women, and children; and various accessories. The company also operates stores, and sells its products through online shopping at shoecarnival.com, as well as through mobile app. Shoe Carnival, Inc. was founded in 1978 and is headquartered in Evansville, Indiana.

About Oxford Industries

Oxford Industries, Inc., an apparel company, designs, sources, markets, and distributes products of lifestyle and other brands worldwide. The company offers men's and women's sportswear and related products under the Tommy Bahama brand; and women's and girl's dresses and sportswear, scarves, bags, jewelry, and belts, as well as children's apparel, swim, footwear, and licensed products under the Lilly Pulitzer brand. In addition, the company licenses Tommy Bahama brand for various products, such as indoor and outdoor furniture, beach chairs, bedding and bath linens, fabrics, leather goods and gifts, headwear, hosiery, sleepwear, shampoo, toiletries, fragrances, cigar accessories, distilled spirits, and other products; and Lilly Pulitzer for stationery and gift products, home furnishing products, and eyewear. The company distribute its products through southerntide.com, thebeaufortbonnetcompany.com, and duckhead.com; and specialty retailers. It offers products through its retail stores, department stores, specialty stores, multi-branded e-commerce retailers, off-price retailers, and other retailers, as well as e-commerce sites. The company operates brand-specific full-price retail stores; Tommy Bahama food and beverage locations; and Tommy Bahama outlet stores. Oxford Industries, Inc. was founded in 1942 and is headquartered in Atlanta, Georgia.