Crocs (NASDAQ:CROX) & G-III Apparel Group (NASDAQ:GIII) Critical Contrast

Crocs (NASDAQ:CROX) and G-III Apparel Group (NASDAQ:GIII) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, institutional ownership, dividends and earnings.

Institutional & Insider Ownership

93.4% of Crocs shares are owned by institutional investors. Comparatively, 92.1% of G-III Apparel Group shares are owned by institutional investors. 3.0% of Crocs shares are owned by insiders. Comparatively, 13.0% of G-III Apparel Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Crocs	1	5	7	0	2.46
G-III Apparel Group	2	2	2	0	2.00

Crocs presently has a consensus target price of $102.00, indicating a potential upside of 24.80%. G-III Apparel Group has a consensus target price of $29.60, indicating a potential upside of 8.23%. Given Crocs’ stronger consensus rating and higher probable upside, analysts plainly believe Crocs is more favorable than G-III Apparel Group.

Volatility & Risk

Crocs has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500. Comparatively, G-III Apparel Group has a beta of 1.49, meaning that its share price is 49% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Crocs	5.72%	44.15%	16.12%
G-III Apparel Group	5.84%	11.53%	7.47%

Earnings and Valuation

This table compares Crocs and G-III Apparel Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Crocs	$4.10 billion	1.09	$950.07 million	$3.73	21.91
G-III Apparel Group	$3.18 billion	0.36	$193.57 million	$4.04	6.77

Crocs has higher revenue and earnings than G-III Apparel Group. G-III Apparel Group is trading at a lower price-to-earnings ratio than Crocs, indicating that it is currently the more affordable of the two stocks.

Summary

Crocs beats G-III Apparel Group on 10 of the 14 factors compared between the two stocks.

About Crocs

Crocs, Inc., together with its subsidiaries, designs, develops, manufactures, markets, distributes, and sells casual lifestyle footwear and accessories for men, women, and children under Crocs and HEYDUDE Brand in the United States and internationally. The company offers various footwear products, including clogs, sandals, slides, flips, wedges, platforms, socks, boots, charms, flip flops, sneakers, and slippers. It sells its products through wholesalers, retail stores, e-commerce sites, third-party marketplaces, and kiosks/store-in-store locations. Crocs, Inc. was founded in 1999 and is headquartered in Broomfield, Colorado.

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.