Head-To-Head Review: Crocs (NASDAQ:CROX) versus Talon International (OTCMKTS:TALN)

Crocs (NASDAQ:CROX) and Talon International (OTCMKTS:TALN) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, profitability and earnings.

Profitability

This table compares Crocs and Talon International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Crocs	5.72%	44.15%	16.12%
Talon International	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings and price targets for Crocs and Talon International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Crocs	3	5	7	0	2.27
Talon International	0	0	0	0	0.00

Crocs presently has a consensus target price of $103.42, suggesting a potential upside of 40.91%. Given Crocs’ stronger consensus rating and higher possible upside, research analysts plainly believe Crocs is more favorable than Talon International.

Earnings and Valuation

This table compares Crocs and Talon International”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Crocs	$4.07 billion	0.94	$950.07 million	$3.07	23.91
Talon International	$32.11 million	0.17	$220,000.00	N/A	N/A

Crocs has higher revenue and earnings than Talon International.

Volatility and Risk

Crocs has a beta of 1.51, indicating that its stock price is 51% more volatile than the S&P 500. Comparatively, Talon International has a beta of -0.7, indicating that its stock price is 170% less volatile than the S&P 500.

Institutional & Insider Ownership

93.4% of Crocs shares are owned by institutional investors. 3.0% of Crocs shares are owned by insiders. Comparatively, 20.3% of Talon International shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Crocs beats Talon International on 11 of the 12 factors compared between the two stocks.

About Crocs

Crocs, Inc., together with its subsidiaries, designs, develops, manufactures, markets, distributes, and sells casual lifestyle footwear and accessories for men, women, and children under Crocs and HEYDUDE Brand in the United States and internationally. The company offers various footwear products, including clogs, sandals, slides, flips, wedges, platforms, socks, boots, charms, flip flops, sneakers, and slippers. It sells its products through wholesalers, retail stores, e-commerce sites, third-party marketplaces, and kiosks/store-in-store locations. Crocs, Inc. was founded in 1999 and is headquartered in Broomfield, Colorado.

About Talon International

Talon International, Inc. manufactures and distributes apparel components and accessories to manufacturers of fashion apparel, specialty retailers, and mass merchandisers. The company offers a line of metal, coil, and plastic zippers under the Talon brand name; apparel trim components, including tags, labels, buttons, rivets, leather patches, woven labels, heat transfer seals, tapes, ribbons, printed marketing material, polybasic, packing cartons, and hangers; Flex-It films, adhesive films, overlay films, seam sealing tapes; metal fasteners; stretch waistbands, shirt collars, and inner pocketing panels under the Tekfit brand, as well as packaging and other items; and specialty stretch technology for interlinings. It also provides outsourced trim design, sourcing, and management services, as well as supplies custom branded trim components. The company sells its products through its own sales force in the United States, Hong Kong, China, India, Indonesia, Vietnam, and Bangladesh, as well as through sales representatives in Europe. The company was formerly known as Tag-It Pacific, Inc. and changed its name to Talon International, Inc. in July 2007. Talon International, Inc. was founded in 1980 and is headquartered in Woodland Hills, California.