Reviewing Steven Madden (NASDAQ:SHOO) and Canada Goose (NYSE:GOOS)

Canada Goose (NYSE:GOOS) and Steven Madden (NASDAQ:SHOO) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, profitability, earnings, dividends and valuation.

Valuation & Earnings

This table compares Canada Goose and Steven Madden”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Canada Goose	$1.11 billion	0.68	$16.29 million	$0.39	19.63
Steven Madden	$2.74 billion	1.22	$44.66 million	$1.99	22.90

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

Volatility and Risk

Canada Goose has a beta of 1.65, indicating that its stock price is 65% more volatile than the S&P 500. Comparatively, Steven Madden has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500.

Insider and Institutional Ownership

83.6% of Canada Goose shares are owned by institutional investors. Comparatively, 99.9% of Steven Madden shares are owned by institutional investors. 0.5% of Canada Goose shares are owned by insiders. Comparatively, 2.2% of Steven Madden shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Canada Goose and Steven Madden’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Canada Goose	3.65%	14.28%	4.56%
Steven Madden	5.23%	13.85%	6.67%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Canada Goose and Steven Madden, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Canada Goose	4	4	1	0	1.67
Steven Madden	1	3	5	1	2.60

Canada Goose currently has a consensus target price of $11.78, indicating a potential upside of 53.91%. Steven Madden has a consensus target price of $51.80, indicating a potential upside of 13.65%. Given Canada Goose’s higher possible upside, analysts clearly believe Canada Goose is more favorable than Steven Madden.

Summary

Steven Madden beats Canada Goose on 12 of the 15 factors compared between the two stocks.

About Canada Goose

Canada Goose Holdings Inc., together with its subsidiaries, designs, manufactures, and sells performance luxury apparel for men, women, youth, children, and babies in Canada, the United States, Asia Pacific, Europe, the Middle East, and Africa. The company operates through three segments: Direct-to-Consumer, Wholesale, and Other. It offers parkas, lightweight down jackets, rainwear, windwear, apparel, fleece, footwear, and accessories for fall, winter, and spring seasons. The company operates through national e-commerce markets and directly operated retail stores. Canada Goose Holdings Inc. was founded in 1957 and is headquartered in Toronto, Canada.

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.