Digital Brands Group (NASDAQ:DBGI) and Shoe Carnival (NASDAQ:SHOE) Financial Survey

Digital Brands Group (NASDAQ:DBGI) and Shoe Carnival (NASDAQ:SHOE) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, profitability, valuation and earnings.

Earnings and Valuation

This table compares Digital Brands Group and Shoe Carnival”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Digital Brands Group	$7.38 million	0.64	-$28.25 million	($88.79)	-0.06
Shoe Carnival	$1.14 billion	0.30	$52.27 million	$0.88	14.42

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

Volatility and Risk

Digital Brands Group has a beta of 0.04, indicating that its stock price is 96% less volatile than the S&P 500. Comparatively, Shoe Carnival has a beta of 1.37, indicating that its stock price is 37% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Digital Brands Group and Shoe Carnival, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Digital Brands Group	1	0	0	0	1.00
Shoe Carnival	1	1	0	1	2.33

Shoe Carnival has a consensus target price of $22.00, suggesting a potential upside of 73.36%. Given Shoe Carnival’s stronger consensus rating and higher probable upside, analysts plainly believe Shoe Carnival is more favorable than Digital Brands Group.

Insider and Institutional Ownership

1.6% of Digital Brands Group shares are held by institutional investors. Comparatively, 66.0% of Shoe Carnival shares are held by institutional investors. 0.0% of Digital Brands Group shares are held by insiders. Comparatively, 33.6% of Shoe Carnival shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Digital Brands Group and Shoe Carnival’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Digital Brands Group	-768.25%	-561.70%	-90.27%
Shoe Carnival	2.20%	5.32%	3.08%

Summary

Shoe Carnival beats Digital Brands Group on 13 of the 14 factors compared between the two stocks.

About Digital Brands Group

Digital Brands Group, Inc. engages in the provision of apparel products under various brands on direct-to-consumer and wholesale basis. It operates through DSTLD, Bailey, H&J, Stateside, and Sundry segments. The company designs, manufactures, and sells women's apparel, such as tops, sweaters, dresses, jumpsuits, bottoms, sets, jackets, rompers, suiting, sportswear, shirts, jackets, pants, shorts, polos, T-shirts, skirts, athleisure bottoms, denims, and other accessory products, as well as suiting for men. It sells its products under the Bailey 44, Harper & Jones, Stateside, Sunnyside, DSTLD, Sundry, and ACE Studios brand names. The company sells directly to the consumer through its websites, as well as through its wholesale channel in specialty stores, select department stores, and own showrooms. Digital Brands Group, Inc. was formerly known as Denim.LA, Inc. Digital Brands Group, Inc. was incorporated in 2012 and is headquartered in Austin, Texas.

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.