Steven Madden (NASDAQ:SHOO) and Dolby Laboratories (NYSE:DLB) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.
Insider and Institutional Ownership
93.1% of Steven Madden shares are held by institutional investors. Comparatively, 59.2% of Dolby Laboratories shares are held by institutional investors. 1.9% of Steven Madden shares are held by company insiders. Comparatively, 38.2% of Dolby Laboratories shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Steven Madden and Dolby Laboratories' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Steven Madden | 2.56% | 10.70% | 7.14% |
| Dolby Laboratories | 20.89% | 10.67% | 8.73% |
Volatility & Risk
Steven Madden has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500. Comparatively, Dolby Laboratories has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and target prices for Steven Madden and Dolby Laboratories, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Steven Madden | 1 | 7 | 2 | 0 | 2.10 |
| Dolby Laboratories | 0 | 1 | 4 | 0 | 2.80 |
Steven Madden currently has a consensus price target of $23.2222, indicating a potential upside of 0.31%. Dolby Laboratories has a consensus price target of $73.6667, indicating a potential upside of 3.35%. Given Dolby Laboratories' stronger consensus rating and higher probable upside, analysts plainly believe Dolby Laboratories is more favorable than Steven Madden.
Valuation and Earnings
This table compares Steven Madden and Dolby Laboratories' revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Steven Madden | $1.79 billion | 1.08 | $141.31 million | $1.95 | 11.87 |
| Dolby Laboratories | $1.24 billion | 5.78 | $255.15 million | $2.44 | 29.21 |
Dolby Laboratories has lower revenue, but higher earnings than Steven Madden. Steven Madden is trading at a lower price-to-earnings ratio than Dolby Laboratories, indicating that it is currently the more affordable of the two stocks.
Summary
Dolby Laboratories beats Steven Madden on 9 of the 14 factors compared between the two stocks.
