Shoe Carnival (NASDAQ:SCVL – Get Free Report) and Fossil Group (NASDAQ:FOSL – Get Free Report) are both small-cap retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.
Profitability
This table compares Shoe Carnival and Fossil Group’s 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% |
| Fossil Group | -6.19% | -48.51% | -7.06% |
Analyst Recommendations
This is a breakdown of current ratings and target prices for Shoe Carnival and Fossil Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Shoe Carnival | 0 | 1 | 0 | 2 | 3.33 |
| Fossil Group | 1 | 1 | 2 | 0 | 2.25 |
Institutional & Insider Ownership
66.1% of Shoe Carnival shares are held by institutional investors. Comparatively, 61.1% of Fossil Group shares are held by institutional investors. 33.6% of Shoe Carnival shares are held by insiders. Comparatively, 2.9% of Fossil Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Shoe Carnival and Fossil Group”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Shoe Carnival | $1.14 billion | 0.41 | $52.27 million | $1.35 | 12.62 |
| Fossil Group | $1.00 billion | 0.24 | -$78.30 million | ($1.14) | -3.52 |
Shoe Carnival has higher revenue and earnings than Fossil Group. Fossil 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.
Risk and Volatility
Shoe Carnival has a beta of 1.41, meaning that its stock price is 41% more volatile than the S&P 500. Comparatively, Fossil Group has a beta of 1.62, meaning that its stock price is 62% more volatile than the S&P 500.
Summary
Shoe Carnival beats Fossil Group on 12 of the 15 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 Fossil Group
Fossil Group, Inc., together with its subsidiaries, designs, develops, markets, and distributes consumer fashion accessories in the United States, Europe, Asia, and internationally. The company’s products include traditional watches, smartwatches, jewelry, handbags, small leather goods, belts, and sunglasses. It also manufactures and distributes private label brands, as well as branded products purchased for resell in other branded retail stores. The company offers its products under its proprietary brands, such as FOSSIL, SKAGEN, MICHELE, RELIC, and ZODIAC; and under the licensed brands, including ARMANI EXCHANGE, DIESEL, DKNY, EMPORIO ARMANI, KATE SPADE NEW YORK, MICHAEL KORS, TORY BURCH, and Skechers. The company sells its products through company-owned retail and outlet stores, department and specialty retail stores, mass market stores, e-commerce sites, licensed and franchised FOSSIL retail stores, and retail concessions, as well as sells its products on airlines. The company was formerly known as Fossil, Inc. and changed its name to Fossil Group, Inc. in May 2013. Fossil Group, Inc. was founded in 1984 and is headquartered in Richardson, Texas.
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