Financial Contrast: Vera Bradley (NASDAQ:VRA) and Deckers Outdoor (NYSE:DECK)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Vera Bradley	-3.66%	-3.80%	-2.11%
Deckers Outdoor	19.18%	42.42%	26.45%

Analyst Recommendations

This is a summary of current recommendations and price targets for Vera Bradley and Deckers Outdoor, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vera Bradley	1	0	0	1	2.50
Deckers Outdoor	4	12	10	0	2.23

Deckers Outdoor has a consensus price target of $103.86, suggesting a potential upside of 22.89%. Given Deckers Outdoor’s higher possible upside, analysts clearly believe Deckers Outdoor is more favorable than Vera Bradley.

Earnings and Valuation

This table compares Vera Bradley and Deckers Outdoor”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vera Bradley	$269.65 million	0.80	-$47.84 million	($0.37)	-20.43
Deckers Outdoor	$5.47 billion	2.06	$1.02 billion	$7.54	11.21

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

Institutional & Insider Ownership

59.9% of Vera Bradley shares are owned by institutional investors. Comparatively, 97.8% of Deckers Outdoor shares are owned by institutional investors. 14.3% of Vera Bradley shares are owned by company insiders. Comparatively, 0.4% of Deckers Outdoor shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Risk and Volatility

Vera Bradley has a beta of 1.45, meaning that its stock price is 45% more volatile than the S&P 500. Comparatively, Deckers Outdoor has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500.

Summary

Deckers Outdoor beats Vera Bradley on 11 of the 15 factors compared between the two stocks.

About Vera Bradley

Vera Bradley, Inc. (NASDAQ: VRA) is a lifestyle company that designs, manufactures and sells handbags, travel products, accessories, gifts and related merchandise. Its products are known for colorful patterns and are offered through company-operated stores, its websites and third-party retail partners. The company’s portfolio includes the Vera Bradley brand, which offers handbags, backpacks, luggage, wallets, apparel, home goods and other lifestyle products. Vera Bradley also owns Pura Vida, a brand centered on bracelets, jewelry and accessories, along with apparel and other products.

About Deckers Outdoor

Deckers Outdoor Corporation designs, markets and distributes footwear, apparel and accessories through a portfolio of consumer brands. Its best-known brands include UGG, HOKA and Teva, which serve customers seeking products for lifestyle, performance and outdoor use. Founded in 1973 in California, Deckers began as a maker of sandals. The company now sells its products worldwide through wholesale partners as well as its own retail stores and e-commerce channels, serving markets across the Americas, Europe, the Middle East and Africa, and Asia-Pacific.