Steven Madden (NASDAQ:SHOO) and The Dixie Group (NASDAQ:DXYN) Critical Comparison

The Dixie Group (NASDAQ:DXYN) and Steven Madden (NASDAQ:SHOO) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, profitability, risk, analyst recommendations, valuation, earnings and institutional ownership.

Profitability

This table compares The Dixie Group and Steven Madden’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
The Dixie Group	-0.99%	-7.65%	-1.04%
Steven Madden	5.23%	13.85%	6.67%

Volatility and Risk

The Dixie Group has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500. Comparatively, Steven Madden has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500.

Institutional and Insider Ownership

40.0% of The Dixie Group shares are held by institutional investors. Comparatively, 99.9% of Steven Madden shares are held by institutional investors. 12.5% of The Dixie Group shares are held by company insiders. Comparatively, 2.2% of Steven Madden shares are held 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.

Analyst Ratings

This is a breakdown of current ratings for The Dixie Group and Steven Madden, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The Dixie Group	0	0	0	0	0.00
Steven Madden	1	3	5	0	2.44

Steven Madden has a consensus price target of $49.75, suggesting a potential upside of 17.67%. Given Steven Madden’s stronger consensus rating and higher probable upside, analysts plainly believe Steven Madden is more favorable than The Dixie Group.

Valuation & Earnings

This table compares The Dixie Group and Steven Madden”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The Dixie Group	$271.01 million	0.02	-$2.72 million	($0.35)	-1.24
Steven Madden	$2.52 billion	1.23	$44.66 million	$1.99	21.25

Steven Madden has higher revenue and earnings than The Dixie Group. The Dixie Group is trading at a lower price-to-earnings ratio than Steven Madden, indicating that it is currently the more affordable of the two stocks.

Summary

Steven Madden beats The Dixie Group on 12 of the 14 factors compared between the two stocks.

About The Dixie Group

The Dixie Group, Inc. manufactures, markets, and sells floorcovering products to residential customers in North America and internationally. The company offers residential carpets, custom rugs, and engineered wood products under the Fabrica brand for interior decorators and designers, selected retailers and furniture stores, luxury home builders, and manufacturers of luxury motor coaches and yachts; and specialty carpets and rugs for the high-end residential marketplace, as well as luxury vinyl flooring products and broadloom carpet products under the Masland Residential brand name through the interior design community and specialty floorcovering retailers. It provides residential tufted broadloom carpets and rugs to selected retailers and home centers under the DH floors and private label brands, as well as luxury vinyl flooring products to the marketplace it serves. The Dixie Group, Inc. was founded in 1920 and is based in Dalton, Georgia.

About Steven Madden

Steven Madden, Ltd. designs, sources, and markets fashion-forward branded and private label footwear, accessories, and apparel in the United States and internationally. It operates through Wholesale Footwear, Wholesale Accessories/Apparel, Direct-to- Consumer, and Licensing segments. The Wholesale Footwear segment designs, sources, and markets various products, including dress shoes, boots, booties, fashion sneakers, sandals, and casual shoes under the Steve Madden, Dolce Vita, Betsey Johnson, Blondo, GREATS, and Anne Klein brands. The Wholesale Accessories/Apparel segment offers handbags, apparel, small leather goods, belts, soft accessories, fashion scarves, wraps, gifting, and other accessories under the Steve Madden, Anne Klein, Betsey Johnson, and Dolce Vita brands. The Direct-to-Consumer segment operates Steve Madden and Dolce Vita full-price retail stores, Steve Madden outlet stores and concessions, and digital e-commerce websites. The Licensing segment engages in the licensing of the Steve Madden and Betsey Johnson trademarks for the sale of select apparel, accessory, home categories, and other non-core products. In addition, the company distributes its products in the wholesale channel through department stores, mass merchants, off-price retailers, shoe chains, online retailers, national chains, specialty retailers, independent stores, and clubs. Further, it markets its products and services through digital brand marketing, social media and influencer marketing, experiential events, in-store and online promotions, and public relations. The company was incorporated in 1990 and is headquartered in Long Island City, New York.