Contrasting Deckers Outdoor (NYSE:DECK) & Birkenstock (NYSE:BIRK)

Deckers Outdoor (NYSE:DECK) and Birkenstock (NYSE:BIRK) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, analyst recommendations, dividends and profitability.

Volatility & Risk

Deckers Outdoor has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500. Comparatively, Birkenstock has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500.

Profitability

This table compares Deckers Outdoor and Birkenstock’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Deckers Outdoor	19.18%	42.42%	26.45%
Birkenstock	14.82%	13.36%	7.21%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Deckers Outdoor and Birkenstock, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Deckers Outdoor	4	12	10	0	2.23
Birkenstock	1	5	13	0	2.63

Deckers Outdoor currently has a consensus target price of $103.86, indicating a potential upside of 18.36%. Birkenstock has a consensus target price of $51.91, indicating a potential upside of 45.72%. Given Birkenstock’s stronger consensus rating and higher possible upside, analysts clearly believe Birkenstock is more favorable than Deckers Outdoor.

Earnings and Valuation

This table compares Deckers Outdoor and Birkenstock”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Deckers Outdoor	$5.58 billion	2.10	$1.02 billion	$7.54	11.64
Birkenstock	$2.32 billion	2.73	$385.46 million	$2.13	16.73

Deckers Outdoor has higher revenue and earnings than Birkenstock. Deckers Outdoor is trading at a lower price-to-earnings ratio than Birkenstock, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

97.8% of Deckers Outdoor shares are owned by institutional investors. Comparatively, 19.9% of Birkenstock shares are owned by institutional investors. 0.4% of Deckers Outdoor shares are owned 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.

Summary

Deckers Outdoor beats Birkenstock on 8 of the 14 factors compared between the two stocks.

About Deckers Outdoor

Deckers Outdoor Corporation designs, markets and distributes footwear, apparel and accessories through a portfolio of consumer brands. Its best-known brands include UGG, HOKA and Teva, which serve customers seeking products for lifestyle, performance and outdoor use. Founded in 1973 in California, Deckers began as a maker of sandals. The company now sells its products worldwide through wholesale partners as well as its own retail stores and e-commerce channels, serving markets across the Americas, Europe, the Middle East and Africa, and Asia-Pacific.

About Birkenstock

Birkenstock is a German footwear company best known for sandals and shoes built around its contoured footbed. Its product range also includes clogs, boots, sneakers and related accessories, sold under the Birkenstock brand. The company’s history traces back to 1774, when Johann Adam Birkenstock was recorded as a shoemaker in Germany. Birkenstock later became known for its anatomically shaped footbed, typically made with materials such as cork and latex. Birkenstock serves customers internationally through wholesale partners, its own retail stores and e-commerce channels.