Nike (NYSE: NKE) and Crocs (NASDAQ:CROX) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, risk and valuation.
Valuation & Earnings
This table compares Nike and Crocs’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Nike||$34.35 billion||3.19||$4.24 billion||$2.51||26.79|
|Crocs||$1.02 billion||1.09||$10.23 million||($0.02)||-813.50|
Volatility and Risk
Nike has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500. Comparatively, Crocs has a beta of 0.3, suggesting that its stock price is 70% less volatile than the S&P 500.
Nike pays an annual dividend of $0.80 per share and has a dividend yield of 1.2%. Crocs does not pay a dividend. Nike pays out 31.9% of its earnings in the form of a dividend.
Insider & Institutional Ownership
65.7% of Nike shares are owned by institutional investors. Comparatively, 99.8% of Crocs shares are owned by institutional investors. 3.9% of Nike shares are owned by company insiders. Comparatively, 1.4% of Crocs shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares Nike and Crocs’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent ratings and recommmendations for Nike and Crocs, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Nike currently has a consensus target price of $68.57, suggesting a potential upside of 1.97%. Crocs has a consensus target price of $10.17, suggesting a potential downside of 37.51%. Given Nike’s stronger consensus rating and higher possible upside, analysts clearly believe Nike is more favorable than Crocs.
Nike beats Crocs on 14 of the 16 factors compared between the two stocks.
Nike Company Profile
NIKE, Inc., together with its subsidiaries, designs, develops, markets, and sells athletic footwear, apparel, equipment, and accessories worldwide. It offers NIKE brand products in nine categories: running, NIKE basketball, the Jordan brand, football, men's training, women's training, action sports, sportswear, and golf. The company also markets products designed for kids, as well as for other athletic and recreational uses, such as cricket, lacrosse, tennis, volleyball, wrestling, walking, and outdoor activities. In addition, it sells sports apparel; and markets apparel with licensed college and professional team and league logos. Further, the company sells a line of performance equipment, including bags, socks, sport balls, eyewear, timepieces, digital devices, bats, gloves, protective equipment, and other equipment under the NIKE brand for sports activities; various plastic products to other manufacturers; athletic and casual footwear, apparel, and accessories under the Jumpman trademark; action sports and youth lifestyle apparel and accessories under the Hurley trademark; and casual sneakers, apparel, and accessories under the Converse, Chuck Taylor, All Star, One Star, Star Chevron, and Jack Purcell trademarks. Additionally, it licenses agreements that permit unaffiliated parties to manufacture and sell apparel, digital devices, and applications and other equipment for sports activities under NIKE-owned trademarks. The company sells its products to footwear stores, sporting goods stores, athletic specialty stores, department stores, skate, tennis and golf shops, and other retail accounts through NIKE-owned retail stores and Internet Websites, mobile applications, independent distributors, and licensees. The company was formerly known as Blue Ribbon Sports, Inc. and changed its name to NIKE, Inc. in 1971. NIKE, Inc. was founded in 1964 and is headquartered in Beaverton, Oregon.
Crocs Company Profile
Crocs, Inc., together with its subsidiaries, designs, develops, manufactures, markets, and distributes casual lifestyle footwear and accessories for men, women, and children worldwide. It offers various footwear products, including clogs, sandals, flips and slides, shoes, and boots under the Crocs brand name. The company sells its products in approximately 90 countries through domestic wholesalers, as well as international wholesalers and distributors; and stores and e-commerce sites. As of December 31, 2017, it had 161 retail stores; 71 kiosks and store-in-stores; 215 outlet stores; and 13 company-operated e-commerce sites. The company was founded in 1999 and is headquartered in Niwot, Colorado.
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