Financial Survey: Deckers Outdoor (NYSE:DECK) vs. Columbia Sportswear (NASDAQ:COLM)

Columbia Sportswear (NASDAQ:COLM) and Deckers Outdoor (NYSE:DECK) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, dividends, analyst recommendations, valuation and earnings.

Institutional and Insider Ownership

47.8% of Columbia Sportswear shares are held by institutional investors. Comparatively, 97.8% of Deckers Outdoor shares are held by institutional investors. 51.9% of Columbia Sportswear shares are held by company insiders. Comparatively, 0.4% of Deckers Outdoor shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Columbia Sportswear has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500. Comparatively, Deckers Outdoor has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Columbia Sportswear	6.05%	11.20%	6.67%
Deckers Outdoor	18.54%	41.51%	26.55%

Valuation and Earnings

This table compares Columbia Sportswear and Deckers Outdoor”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Columbia Sportswear	$3.40 billion	0.90	$177.22 million	$3.85	15.58
Deckers Outdoor	$5.47 billion	2.17	$1.02 billion	$7.05	12.38

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for Columbia Sportswear and Deckers Outdoor, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Columbia Sportswear	1	3	2	0	2.17
Deckers Outdoor	3	11	9	0	2.26

Columbia Sportswear currently has a consensus target price of $65.40, indicating a potential upside of 9.04%. Deckers Outdoor has a consensus target price of $111.84, indicating a potential upside of 28.13%. Given Deckers Outdoor’s stronger consensus rating and higher probable upside, analysts plainly believe Deckers Outdoor is more favorable than Columbia Sportswear.

Summary

Deckers Outdoor beats Columbia Sportswear on 12 of the 14 factors compared between the two stocks.

About Columbia Sportswear

Columbia Sportswear Company, together with its subsidiaries, designs, develops, markets, and distributes outdoor, active, and everyday lifestyle apparel, footwear, accessories, and equipment in the United States, Latin America, the Asia Pacific, Europe, the Middle East, Africa, and Canada. The company provides apparel, accessories, and equipment for hiking, trail running, snow, fishing, hunting, mountaineering, climbing, skiing and snowboarding, trail, and outdoor activities. It offers footwear products that include lightweight hiking boot; trail running shoes; rugged cold weather boots; sandals and shoes for use in water activities; and footwear for lifestyle wear. In addition, it owned network of branded and outlet retail stores; brand-specific e-commerce sites; and concession or franchise-based arrangements with third parties at branded outlet and shop-in-shop retail locations, as well as through independently operated specialty outdoor and sporting goods stores, sporting goods chains, department store chains, internet retailers, and international distributors. The company sells its products under the Columbia, Mountain Hard Wear, SOREL, and prAna brand names. Columbia Sportswear Company was founded in 1938 and is headquartered in Portland, Oregon.

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.