Steven Madden (NASDAQ:SHOO) and Cable One (NYSE:CABO) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.
Risk & Volatility
Steven Madden has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500. Comparatively, Cable One has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500.
Earnings & Valuation
This table compares Steven Madden and Cable One's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Steven Madden | $1.20 billion | 2.66 | $-18,400,000.00 | $0.64 | 60.89 |
| Cable One | $1.33 billion | 8.97 | $304.39 million | $44.49 | 44.24 |
Cable One has higher revenue and earnings than Steven Madden. Cable One is trading at a lower price-to-earnings ratio than Steven Madden, indicating that it is currently the more affordable of the two stocks.
Dividends
Steven Madden pays an annual dividend of $0.60 per share and has a dividend yield of 1.5%. Cable One pays an annual dividend of $11.00 per share and has a dividend yield of 0.6%. Steven Madden pays out 93.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cable One pays out 24.7% of its earnings in the form of a dividend. Steven Madden has raised its dividend for 1 consecutive years. Steven Madden is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional & Insider Ownership
93.1% of Steven Madden shares are owned by institutional investors. Comparatively, 86.6% of Cable One shares are owned by institutional investors. 1.9% of Steven Madden shares are owned by insiders. Comparatively, 1.1% of Cable One shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares Steven Madden and Cable One's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Steven Madden | 5.05% | 15.30% | 10.49% |
| Cable One | 24.48% | 19.50% | 5.84% |
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Steven Madden and Cable One, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Steven Madden | 0 | 2 | 4 | 0 | 2.67 |
| Cable One | 0 | 1 | 5 | 0 | 2.83 |
Steven Madden presently has a consensus target price of $42.3750, indicating a potential upside of 8.96%. Cable One has a consensus target price of $2,301.1667, indicating a potential upside of 16.49%. Given Cable One's stronger consensus rating and higher probable upside, analysts plainly believe Cable One is more favorable than Steven Madden.
Summary
Cable One beats Steven Madden on 10 of the 17 factors compared between the two stocks.
