Critical Review: Crocs (NASDAQ:CROX) versus Oxford Industries (NYSE:OXM)

Oxford Industries (NYSE:OXM) and Crocs (NASDAQ:CROX) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Profitability

This table compares Oxford Industries and Crocs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Oxford Industries	-0.20%	9.35%	4.18%
Crocs	4.48%	43.14%	15.26%

Institutional and Insider Ownership

91.2% of Oxford Industries shares are owned by institutional investors. Comparatively, 93.4% of Crocs shares are owned by institutional investors. 6.0% of Oxford Industries shares are owned by insiders. Comparatively, 3.0% of Crocs shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Oxford Industries has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500. Comparatively, Crocs has a beta of 1.56, suggesting that its share price is 56% more volatile than the S&P 500.

Valuation and Earnings

This table compares Oxford Industries and Crocs”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oxford Industries	$1.52 billion	0.39	$92.97 million	($0.33)	-121.45
Crocs	$4.07 billion	1.09	$950.07 million	$3.07	27.95

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

Analyst Recommendations

This is a summary of current ratings and target prices for Oxford Industries and Crocs, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oxford Industries	2	5	0	0	1.71
Crocs	3	7	4	0	2.07

Oxford Industries presently has a consensus target price of $45.40, suggesting a potential upside of 13.27%. Crocs has a consensus target price of $94.64, suggesting a potential upside of 10.29%. Given Oxford Industries’ higher probable upside, analysts clearly believe Oxford Industries is more favorable than Crocs.

Summary

Crocs beats Oxford Industries on 12 of the 14 factors compared between the two stocks.

About Oxford Industries

Oxford Industries, Inc., an apparel company, designs, sources, markets, and distributes products of lifestyle and other brands worldwide. The company offers men's and women's sportswear and related products under the Tommy Bahama brand; and women's and girl's dresses and sportswear, scarves, bags, jewelry, and belts, as well as children's apparel, swim, footwear, and licensed products under the Lilly Pulitzer brand. In addition, the company licenses Tommy Bahama brand for various products, such as indoor and outdoor furniture, beach chairs, bedding and bath linens, fabrics, leather goods and gifts, headwear, hosiery, sleepwear, shampoo, toiletries, fragrances, cigar accessories, distilled spirits, and other products; and Lilly Pulitzer for stationery and gift products, home furnishing products, and eyewear. The company distribute its products through southerntide.com, thebeaufortbonnetcompany.com, and duckhead.com; and specialty retailers. It offers products through its retail stores, department stores, specialty stores, multi-branded e-commerce retailers, off-price retailers, and other retailers, as well as e-commerce sites. The company operates brand-specific full-price retail stores; Tommy Bahama food and beverage locations; and Tommy Bahama outlet stores. Oxford Industries, Inc. was founded in 1942 and is headquartered in Atlanta, Georgia.

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.