Industria de Diseno Textil (OTCMKTS:IDEXY) vs. Shoe Carnival (NASDAQ:SCVL) Critical Survey

Industria de Diseno Textil (OTCMKTS:IDEXY) and Shoe Carnival (NASDAQ:SCVL) are both retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, risk, dividends and profitability.

Insider and Institutional Ownership

66.1% of Shoe Carnival shares are owned by institutional investors. 35.5% of Shoe Carnival shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Industria de Diseno Textil and Shoe Carnival’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Industria de Diseno Textil	15.15%	32.32%	16.84%
Shoe Carnival	5.41%	9.65%	5.53%

Dividends

Industria de Diseno Textil pays an annual dividend of $0.31 per share and has a dividend yield of 2.2%. Shoe Carnival pays an annual dividend of $0.60 per share and has a dividend yield of 3.1%. Industria de Diseno Textil pays out 59.6% of its earnings in the form of a dividend. Shoe Carnival pays out 26.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Shoe Carnival has raised its dividend for 14 consecutive years. Shoe Carnival is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of current ratings for Industria de Diseno Textil and Shoe Carnival, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Industria de Diseno Textil	0	1	0	4	3.60
Shoe Carnival	1	2	0	0	1.67

Risk & Volatility

Industria de Diseno Textil has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500. Comparatively, Shoe Carnival has a beta of 1.37, suggesting that its share price is 37% more volatile than the S&P 500.

Earnings & Valuation

This table compares Industria de Diseno Textil and Shoe Carnival”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Industria de Diseno Textil	$41.81 billion	4.21	$6.32 billion	$0.52	27.13
Shoe Carnival	$1.20 billion	0.44	$73.77 million	$2.27	8.58

Industria de Diseno Textil has higher revenue and earnings than Shoe Carnival. Shoe Carnival is trading at a lower price-to-earnings ratio than Industria de Diseno Textil, indicating that it is currently the more affordable of the two stocks.

Summary

Industria de Diseno Textil beats Shoe Carnival on 9 of the 16 factors compared between the two stocks.

About Industria de Diseno Textil

Industria de Diseño Textil, S.A. engages in the retail and online distribution of clothing, footwear, accessories, and household products. The company sells its products under the Zara, Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, and Zara Home brands. It is also involved in the textile manufacturing, logistics, design, insurance, construction, and real estate businesses, as well as provides financial services. The company operates in Spain, rest of Europe, the Americas, Asia, and internationally. Industria de Diseño Textil, S.A. was founded in 1963 and is headquartered in A Coruña, Spain.

About Shoe Carnival

Shoe Carnival, Inc., together with its subsidiaries, operates as a family footwear retailer in the United States. The company offers range of dress, casual, work, and athletic shoes, as well as sandals and boots for men, women, and children; and various accessories. The company also operates stores, and sells its products through online shopping at shoecarnival.com, as well as through mobile app. Shoe Carnival, Inc. was founded in 1978 and is headquartered in Evansville, Indiana.