Hugo Boss (OTCMKTS:BOSSY) & Crocs (NASDAQ:CROX) Critical Analysis

Hugo Boss (OTCMKTS:BOSSY) and Crocs (NASDAQ:CROX) are both mid-cap consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.

Risk and Volatility

Hugo Boss has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500. Comparatively, Crocs has a beta of 1.41, suggesting that its stock price is 41% more volatile than the S&P 500.

Valuation and Earnings

This table compares Hugo Boss and Crocs”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hugo Boss	$4.66 billion	0.70	$230.99 million	$0.69	13.61
Crocs	$4.10 billion	1.13	$950.07 million	$3.73	22.71

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

Insider and Institutional Ownership

93.4% of Crocs shares are held by institutional investors. 3.0% of Crocs shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Hugo Boss and Crocs, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hugo Boss	0	2	0	0	2.00
Crocs	1	4	9	0	2.57

Crocs has a consensus target price of $108.9231, suggesting a potential upside of 28.60%. Given Crocs’ stronger consensus rating and higher probable upside, analysts plainly believe Crocs is more favorable than Hugo Boss.

Profitability

This table compares Hugo Boss and Crocs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hugo Boss	5.15%	15.65%	6.06%
Crocs	5.72%	44.15%	16.12%

Summary

Crocs beats Hugo Boss on 13 of the 14 factors compared between the two stocks.

About Hugo Boss

Hugo Boss AG, together with its subsidiaries, provides apparels, shoes, and accessories for men and women worldwide. It also offers licensed products comprising of fragrances, eyewear, watches, children’s fashion, equestrian, and cycling. The company markets and sells its products under the BOSS and HUGO brand names through freestanding stores, shop-in-shops, factory outlets, multi-brand stores, and franchise business, as well as online retailers, distribution, and stores. Hugo Boss AG was founded in 1924 and is headquartered in Metzingen, Germany.

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.