Critical Analysis: LVMH-Moet Hennessy Louis Vuitton (OTCMKTS:LVMUY) vs. Rocky Brands (NASDAQ:RCKY)

Rocky Brands (NASDAQ:RCKY) and LVMH-Moet Hennessy Louis Vuitton (OTCMKTS:LVMUY) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, dividends, valuation, profitability and analyst recommendations.

Profitability

This table compares Rocky Brands and LVMH-Moet Hennessy Louis Vuitton’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rocky Brands	5.72%	12.28%	6.43%
LVMH-Moet Hennessy Louis Vuitton	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Rocky Brands and LVMH-Moet Hennessy Louis Vuitton, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rocky Brands	0	2	2	0	2.50
LVMH-Moet Hennessy Louis Vuitton	0	2	2	5	3.33

Rocky Brands presently has a consensus target price of $56.00, indicating a potential upside of 24.34%. Given Rocky Brands’ higher probable upside, equities analysts plainly believe Rocky Brands is more favorable than LVMH-Moet Hennessy Louis Vuitton.

Dividends

Rocky Brands pays an annual dividend of $0.68 per share and has a dividend yield of 1.5%. LVMH-Moet Hennessy Louis Vuitton pays an annual dividend of $2.49 per share and has a dividend yield of 2.4%. Rocky Brands pays out 17.8% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Rocky Brands and LVMH-Moet Hennessy Louis Vuitton”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rocky Brands	$481.98 million	0.70	$22.27 million	$3.82	11.79
LVMH-Moet Hennessy Louis Vuitton	$91.40 billion	2.86	$12.31 billion	N/A	N/A

LVMH-Moet Hennessy Louis Vuitton has higher revenue and earnings than Rocky Brands.

Insider and Institutional Ownership

75.1% of Rocky Brands shares are held by institutional investors. Comparatively, 0.3% of LVMH-Moet Hennessy Louis Vuitton shares are held by institutional investors. 7.6% of Rocky Brands shares are held 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.

Volatility & Risk

Rocky Brands has a beta of 2.36, meaning that its stock price is 136% more volatile than the S&P 500. Comparatively, LVMH-Moet Hennessy Louis Vuitton has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500.

About Rocky Brands

Rocky Brands, Inc. designs, manufactures, and markets footwear and apparel in the United States, Canada, and internationally. It operates through Wholesale, Retail, and Contract Manufacturing segments. The Wholesale segment offers products, which includes sporting goods stores, outdoor retailers, independent shoe retailers, hardware stores, catalogs, mass merchants, uniform stores, farm store chains, specialty safety stores, specialty retailers, and online retailers in retail locations through a range of distribution channels. Retail segment sells its products directly to consumers through its websites comprising rockyboots.com, georgiaboot.com, durangoboot.com, muckbootcompany.com, xtratuf.com, lehighoutfitters.com, lehighsafetyshoes.com, and slipgrips.com; and third-party marketplaces and Rocky Outdoor Gear Stores. The Contract Manufacturing segment include private label sales and any sales to customers which are contracted to manufacture a specific footwear product for a customer and include sales to the U.S. Military. In addition, it serves industrial and construction workers, as well as workers in the hospitality industry, such as restaurants or hotels; farmers and ranchers; western; commercial military personnel; hunting, fishing, camping, and hiking enthusiasts; law enforcement, security personnel, and postal employees; and for the U.S. military personnel. The company sells its products under the Rocky, Georgia Boot, Durango, Lehigh, Muck, XTRATUF, Servus, Ranger, and Michelin brand names Rocky Brands, Inc. was formerly known as William Brooks Shoe Co. The company was founded in 1932 and is headquartered in Nelsonville, Ohio.

About LVMH-Moet Hennessy Louis Vuitton

LVMH Moët Hennessy – Louis Vuitton, Société Européenne operates as a luxury goods company worldwide. The company offers wines, and spirits under the domaine des Lambrays, Château d'Yquem, Dom Pérignon, Ruinart, Moët & Chandon, Hennessy, Veuve Clicquot, Château Galoupet, Ardbeg, Château Cheval Blanc, Glenmorangie, Krug, Mercier, Chandon, Joseph Phelps, Newton Vineyard, Cloudy Bay, Belvedere, Colgin Cellars,Terrazas de los Andes, Bodega Numanthia, Cheval des Andes, Woodinville, Ao Yun, Clos19, Volcan de mi Tierra, and Eminente brands; and fashion and leather products under the Loewe, Moynat, Louis Vuitton, Berluti, RIMOWA, Patou, Loro Piana, FENDI, Celine, Christian Dior, Emilio Pucci, Givenchy, Kenzo, and Marc Jacobs brands. It also provides perfumes and cosmetics under the Stella by Stella Mccartney, Officine Universelle Buly, Guerlain, Acqua di Parma, Parfums Christian Dior, Givenchy Parfums, Perfumes Loewe, Benefit Cosmetics, Make Up For Ever, Kenzo Parfums, Fresh, KVD Beauty, Maison Francis Kurkdjian, Cha Ling, Fenty Beauty by Rihanna, and Olehenriksen brands; watches and jewelry under the Chaumet, Tiffany & Co., TAG Heuer, Zenith, Bulgari, Fred, Hublot, and Repossi brands; and custom-designed yachts under the Feadship brand and hotels under the Cheval Blanc brand names, as well as designs and builds luxury yachts under the Royal Van Lent brand. In addition, the company offers daily newspapers under the Les Échos brand; Belmond, a luxury tourism service; home other activities under the Cova, Jardin d'Acclimatation, Le Parisien, Connaissance des Arts, Investir, and Radio Classique brands; and selective retailing products under the DFS, La Grande Epicerie de Paris, Le Bon Marché Rive Gauche, Sephora, and Starboard Cruise Services brands, as well as operates Jardin d'Acclimatation, a leisure and theme park. LVMH Moët Hennessy – Louis Vuitton, Société Européenne was founded in 1365 and is headquartered in Paris, France.