Head to Head Review: Phoenix Footwear Group (OTCMKTS:PXFG) vs. NIKE (NYSE:NKE)

Phoenix Footwear Group (OTCMKTS:PXFG) and NIKE (NYSE:NKE) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, valuation, risk, dividends and analyst recommendations.

Profitability

This table compares Phoenix Footwear Group and NIKE’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Phoenix Footwear Group	-14.91%	N/A	N/A
NIKE	9.43%	32.18%	11.96%

Risk & Volatility

Phoenix Footwear Group has a beta of 0.49, meaning that its stock price is 51% less volatile than the S&P 500. Comparatively, NIKE has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Phoenix Footwear Group and NIKE, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Phoenix Footwear Group	0	0	0	0	0.00
NIKE	0	16	15	2	2.58

NIKE has a consensus target price of $78.74, indicating a potential upside of 29.95%. Given NIKE’s stronger consensus rating and higher possible upside, analysts plainly believe NIKE is more favorable than Phoenix Footwear Group.

Insider & Institutional Ownership

64.3% of NIKE shares are owned by institutional investors. 29.7% of Phoenix Footwear Group shares are owned by insiders. Comparatively, 1.1% of NIKE shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Phoenix Footwear Group and NIKE”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Phoenix Footwear Group	$17.97 million	0.01	-$2.68 million	($0.18)	-0.06
NIKE	$51.36 billion	1.75	$5.70 billion	$3.01	20.13

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

Summary

NIKE beats Phoenix Footwear Group on 14 of the 15 factors compared between the two stocks.

About Phoenix Footwear Group

Phoenix Footwear Group, Inc. designs, develops, markets, and sells women’s footwear primarily in the United States. The company offers its products under the Trotters and SoftWalk brand names. It distributes its products through department stores, specialty and independent retail stores, mail order catalogues, and Internet retailers, as well as directly to consumers through SoftWalkshoes.com and trotters.com Websites. Phoenix Footwear Group, Inc. was founded in 1882 and is headquartered in Carlsbad, California.

About NIKE

NIKE, Inc., together with its subsidiaries, designs, develops, markets, and sells athletic footwear, apparel, equipment, accessories, and services worldwide. The company provides athletic and casual footwear, apparel, and accessories under the Jumpman trademark; and casual sneakers, apparel, and accessories under the Converse, Chuck Taylor, All Star, One Star, Star Chevron, and Jack Purcell trademarks. It also sells a line of performance equipment and accessories comprising bags, sport balls, socks, eyewear, timepieces, digital devices, bats, gloves, protective equipment, and other equipment for sports activities under the NIKE brand; and various plastic products to other manufacturers. In addition, the company markets apparel with licensed college and professional team, and league logos, as well as sells sports apparel; and licenses unaffiliated parties to manufacture and sell apparel, digital devices, and applications and other equipment for sports activities under NIKE-owned trademarks. It sells its products to footwear stores; sporting goods stores; athletic specialty stores; department stores; skate, tennis, and golf shops; and other retail accounts through NIKE-owned retail stores, digital platforms, independent distributors, licensees, and sales representatives. NIKE, Inc. was founded in 1964 and is headquartered in Beaverton, Oregon.