Reviewing Steven Madden (NASDAQ:SHOO) and G-III Apparel Group (NASDAQ:GIII)

G-III Apparel Group (NASDAQ:GIII) and Steven Madden (NASDAQ:SHOO) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.

Dividends

G-III Apparel Group pays an annual dividend of $0.40 per share and has a dividend yield of 1.3%. Steven Madden pays an annual dividend of $0.84 per share and has a dividend yield of 1.9%. G-III Apparel Group pays out 13.2% of its earnings in the form of a dividend. Steven Madden pays out 42.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Volatility & Risk

G-III Apparel Group has a beta of 1.28, suggesting that its stock price is 28% more volatile than the S&P 500. Comparatively, Steven Madden has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500.

Earnings & Valuation

This table compares G-III Apparel 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
G-III Apparel Group	$2.85 billion	0.46	$67.35 million	$3.04	9.96
Steven Madden	$2.74 billion	1.16	$44.66 million	$1.99	21.86

G-III Apparel Group has higher revenue and earnings than Steven Madden. G-III Apparel 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.

Profitability

This table compares G-III Apparel Group and Steven Madden’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
G-III Apparel Group	4.75%	5.53%	3.71%
Steven Madden	5.23%	13.85%	6.67%

Institutional & Insider Ownership

92.1% of G-III Apparel Group shares are owned by institutional investors. Comparatively, 99.9% of Steven Madden shares are owned by institutional investors. 15.0% of G-III Apparel Group shares are owned by company insiders. Comparatively, 2.2% of Steven Madden 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.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for G-III Apparel Group and Steven Madden, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
G-III Apparel Group	0	4	2	0	2.33
Steven Madden	1	3	5	1	2.60

G-III Apparel Group currently has a consensus target price of $34.75, suggesting a potential upside of 14.76%. Steven Madden has a consensus target price of $52.30, suggesting a potential upside of 20.23%. Given Steven Madden’s stronger consensus rating and higher possible upside, analysts plainly believe Steven Madden is more favorable than G-III Apparel Group.

Summary

Steven Madden beats G-III Apparel Group on 11 of the 17 factors compared between the two stocks.

About G-III Apparel Group

G-III Apparel Group, Ltd. designs, sources, and markets women's and men's apparel in the United States and internationally. The company operates through two segments, Wholesale Operations and Retail Operations. Its products include outerwear, dresses, sportswear, swimwear, women's suits, and women's performance wear; and women's handbags, footwear, small leather goods, cold weather accessories, and luggage. The company markets apparel and other products under the proprietary brands, including DKNY, Donna Karan, Karl Lagerfeld, Karl Lagerfeld Paris, Vilebrequin, G.H. Bass, Eliza J, Jessica Howard, Andrew Marc, Marc New York, Wilsons Leather, Sonia Rykiel, and G-III Sports by Carl Banks; and licensed brands, such as Calvin Klein, Tommy Hilfiger, Levi's, Guess?, Kenneth Cole, Cole Haan, Vince Camuto, Margaritaville, and Dockers. It has licenses with the National Football League, National Basketball Association, Major League Baseball, and National Hockey League, as well as approximately 150 U.S. colleges and universities. The company offers its products to department, specialty, and mass merchant retail stores. It also sells its products online. G-III Apparel Group, Ltd. was founded in 1956 and is based in New York, New York.

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.