Crocs (NASDAQ:CROX) & Innovative Designs (OTCMKTS:IVDN) Critical Analysis

Innovative Designs (OTCMKTS:IVDN) and Crocs (NASDAQ:CROX) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, profitability, earnings, analyst recommendations, institutional ownership and dividends.

Earnings & Valuation

This table compares Innovative Designs and Crocs”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Innovative Designs	$1.38 million	6.10	$100,000.00	$0.03	7.28
Crocs	$4.07 billion	0.94	$950.07 million	$3.07	23.91

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

Profitability

This table compares Innovative Designs and Crocs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Innovative Designs	18.54%	29.89%	26.00%
Crocs	5.72%	44.15%	16.12%

Volatility & Risk

Innovative Designs has a beta of -2.99, indicating that its share price is 399% less volatile than the S&P 500. Comparatively, Crocs has a beta of 1.51, indicating that its share price is 51% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Innovative Designs and Crocs, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innovative Designs	0	0	0	0	0.00
Crocs	3	5	7	0	2.27

Crocs has a consensus target price of $103.42, indicating a potential upside of 40.91%. Given Crocs’ stronger consensus rating and higher probable upside, analysts plainly believe Crocs is more favorable than Innovative Designs.

Institutional and Insider Ownership

93.4% of Crocs shares are held by institutional investors. 24.4% of Innovative Designs shares are held by company insiders. Comparatively, 3.0% of Crocs shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Crocs beats Innovative Designs on 10 of the 14 factors compared between the two stocks.

About Innovative Designs

Innovative Designs, Inc. engages in manufacture and marketing of cold weather recreational and industrial clothing products in the United States and Canada. The company operates in two segments, Apparel and House Wrap. It offers arctic armor line products, including jackets, bibs, and gloves for ice fisherman, snowmobilers, utility workers, oil/gas pipeline workers, railroad workers, construction workers, ski resort workers, and police and first responders; and house wrap that provides barrier protection and moisture vapor transmission and insulation for the building construction industry. In addition, it offers INSULTEX material in bulk to non-competing customers; products that restore the waterproof character of the outer side of its arctic armor clothing; and cold weather headgears and base insulation clothing products. The company primarily sells its products through independent sales agents, agencies, retailers, and distributors, as well as through website. The company was incorporated in 2002 and is based in Pittsburgh, Pennsylvania.

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.