Critical Analysis: Deckers Outdoor (NYSE:DECK) versus Christopher & Banks (OTCMKTS:CBKCQ)

Deckers Outdoor (NYSE:DECK) and Christopher & Banks (OTCMKTS:CBKCQ) are both retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, institutional ownership, risk and earnings.

Risk and Volatility

Deckers Outdoor has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500. Comparatively, Christopher & Banks has a beta of -4.68, meaning that its share price is 568% less volatile than the S&P 500.

Earnings and Valuation

This table compares Deckers Outdoor and Christopher & Banks”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Deckers Outdoor	$4.99 billion	2.87	$966.09 million	$7.08	14.23
Christopher & Banks	N/A	N/A	N/A	N/A	N/A

Deckers Outdoor has higher revenue and earnings than Christopher & Banks.

Profitability

This table compares Deckers Outdoor and Christopher & Banks’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Deckers Outdoor	19.46%	41.60%	27.35%
Christopher & Banks	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings for Deckers Outdoor and Christopher & Banks, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Deckers Outdoor	3	10	11	1	2.40
Christopher & Banks	0	0	0	0	0.00

Deckers Outdoor presently has a consensus target price of $126.35, indicating a potential upside of 25.37%. Given Deckers Outdoor’s stronger consensus rating and higher probable upside, equities analysts clearly believe Deckers Outdoor is more favorable than Christopher & Banks.

Insider & Institutional Ownership

97.8% of Deckers Outdoor shares are held by institutional investors. 0.4% of Deckers Outdoor shares are held by insiders. Comparatively, 19.8% of Christopher & Banks shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Deckers Outdoor beats Christopher & Banks on 10 of the 11 factors compared between the two stocks.

About Deckers Outdoor

Deckers Outdoor Corporation, together with its subsidiaries, designs, markets, and distributes footwear, apparel, and accessories for casual lifestyle use and high-performance activities in the United States and internationally. The company offers premium footwear, apparel, and accessories under the UGG brand name; footwear, apparel, and accessories for ultra-runners and athletes under the HOKA brand name; and sandals, shoes, and boots under the Teva brand name. It also provides relaxed casual shoes and sandals under the Sanuk brand name; casual footwear fashion line under the Koolaburra brand name; and footwear under the AHNU brand name. The company sells its products through domestic and international retailers; international distributors; and directly to its consumers through its direct-to-consumer business, which includes e-commerce websites and retail stores. Deckers Outdoor Corporation was founded in 1973 and is headquartered in Goleta, California.

About Christopher & Banks

Christopher & Banks Corporation, together with its subsidiaries, operates as a specialty retailer of private-brand women's apparel and accessories in the United States. The company designs and sells women's apparel and accessories to customers ranging in age from 50 and older. Its stores offer women's apparel consisting of casual clothing, everyday basics, wear-to-work, leisure/active wear, and sleepwear in missy, petite, and women sizes, as well as jewelry and accessories. It also operates christopherandbanks.com, an e-commerce website for its Christopher & Banks and CJ Banks brands. The company was formerly known as Braun's Fashions Corporation and changed its name to Christopher & Banks Corporation in July 2000. Christopher & Banks Corporation was founded in 1956 and is headquartered in Plymouth, Minnesota. On April 13, 2021, the voluntary petition of Christopher & Banks Corporation for reorganization under Chapter 11 was converted to Chapter 7. It had filed for Chapter 11 bankruptcy on January 13, 2021.