Head-To-Head Comparison: Unifi (NYSE:UFI) & Deckers Outdoor (NYSE:DECK)

Deckers Outdoor (NYSE:DECK) and Unifi (NYSE:UFI) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, profitability, analyst recommendations, valuation and risk.

Valuation and Earnings

This table compares Deckers Outdoor and Unifi”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Deckers Outdoor	$5.47 billion	1.99	$1.02 billion	$7.05	11.34
Unifi	$531.30 million	0.23	-$24.56 million	($1.33)	-4.95

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

Volatility & Risk

Deckers Outdoor has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500. Comparatively, Unifi has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Deckers Outdoor and Unifi, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Deckers Outdoor	3	13	9	0	2.24
Unifi	1	0	0	0	1.00

Deckers Outdoor presently has a consensus price target of $114.80, indicating a potential upside of 43.60%. Given Deckers Outdoor’s stronger consensus rating and higher probable upside, research analysts clearly believe Deckers Outdoor is more favorable than Unifi.

Profitability

This table compares Deckers Outdoor and Unifi’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Deckers Outdoor	18.54%	41.51%	26.55%
Unifi	-4.62%	-10.32%	-6.08%

Institutional and Insider Ownership

97.8% of Deckers Outdoor shares are owned by institutional investors. Comparatively, 67.7% of Unifi shares are owned by institutional investors. 0.4% of Deckers Outdoor shares are owned by company insiders. Comparatively, 20.5% of Unifi shares are owned by company 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.

Summary

Deckers Outdoor beats Unifi on 13 of the 14 factors compared between the two stocks.

About Deckers Outdoor

Deckers Outdoor Corporation, together with its subsidiaries, designs, markets, and distributes footwear, apparel, and accessories for casual lifestyle use and high-performance activities in the United States and internationally. The company offers premium footwear, apparel, and accessories under the UGG brand name; footwear, apparel, and accessories for ultra-runners and athletes under the HOKA brand name; and sandals, shoes, and boots under the Teva brand name. It also provides relaxed casual shoes and sandals under the Sanuk brand name; casual footwear fashion line under the Koolaburra brand name; and footwear under the AHNU brand name. The company sells its products through domestic and international retailers; international distributors; and directly to its consumers through its direct-to-consumer business, which includes e-commerce websites and retail stores. Deckers Outdoor Corporation was founded in 1973 and is headquartered in Goleta, California.

About Unifi

Unifi, Inc., together with its subsidiaries, engages in the manufacture and sale of recycled and synthetic products in North America, Central America, South America, Asia, and Europe. Its polyester products include partially oriented yarn, textured, solution and package dyed, twisted, beamed, and draw wound yarns in virgin or recycled varieties; and nylon products comprise virgin or recycled textured, solution dyed, and spandex covered yarns. The company also provides recycled solutions made from pre-consumer and post-consumer waste, such as plastic bottle flakes, polyester polymer beads, and staple fiber. It offers recycled and synthetic products primarily to yarn manufacturers, knitters, and weavers that produces yarn and fabric for the apparel, hosiery, automotive, home furnishings, industrial, medical, and other end-use markets. The company sells its products through sales force and independent sales agents under the REPREVE brand. Unifi, Inc. was incorporated in 1969 and is headquartered in Greensboro, North Carolina.