Critical Analysis: Boot Barn Holdings (BOOT) versus Shoe Carnival (SCVL)

Boot Barn Holdings (NYSE: BOOT) and Shoe Carnival (NASDAQ:SCVL) are both small-cap retail/wholesale companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Risk and Volatility

Boot Barn Holdings has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500. Comparatively, Shoe Carnival has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Boot Barn Holdings and Shoe Carnival, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Boot Barn Holdings 0 2 5 0 2.71
Shoe Carnival 0 5 2 0 2.29

Boot Barn Holdings currently has a consensus target price of $10.43, indicating a potential upside of 25.65%. Shoe Carnival has a consensus target price of $22.50, indicating a potential upside of 33.45%. Given Shoe Carnival’s higher probable upside, analysts plainly believe Shoe Carnival is more favorable than Boot Barn Holdings.

Dividends

Shoe Carnival pays an annual dividend of $0.30 per share and has a dividend yield of 1.8%. Boot Barn Holdings does not pay a dividend. Shoe Carnival pays out 25.2% of its earnings in the form of a dividend.

Profitability

This table compares Boot Barn Holdings and Shoe Carnival’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Boot Barn Holdings 2.26% 8.58% 2.66%
Shoe Carnival 2.12% 7.27% 4.91%

Valuation and Earnings

This table compares Boot Barn Holdings and Shoe Carnival’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Boot Barn Holdings $635.78 million 0.35 $56.20 million $0.54 15.37
Shoe Carnival $994.02 million 0.29 $62.91 million $1.19 14.17

Shoe Carnival has higher revenue and earnings than Boot Barn Holdings. Shoe Carnival is trading at a lower price-to-earnings ratio than Boot Barn Holdings, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

62.2% of Shoe Carnival shares are owned by institutional investors. 4.6% of Boot Barn Holdings shares are owned by insiders. Comparatively, 28.5% of Shoe Carnival shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Boot Barn Holdings Company Profile

Boot Barn Holdings, Inc. is a lifestyle retailer of western and work-related footwear, apparel and accessories for men, women and children. The Company’s stores are located in or near neighborhood shopping centers with trade areas of approximately five or more miles, and it has opened stores in malls and outlet center locations. The Company’s stores average an area of approximately 11,490 square feet and feature an assortment of brands and styles. It also carries assortments of denim, western shirts, cowboy hats, belts and belt buckles, western-style jewelry and accessories. The Company’s western assortment includes various brands, such as Ariat, Dan Post, Justin, Levi Strauss, Lucchese, Miss Me, Montana Silversmiths, Resistol and Wrangler. Its work assortment includes rugged footwear, outerwear, overalls, denim and shirts. Its other brands include Carhartt, Georgia, Timberland Pro and Wolverine. As of March 26, 2016, the Company operated 208 stores in 29 states.

Shoe Carnival Company Profile

Shoe Carnival, Inc. is a family footwear retailer. The Company’s primary activity is the sale of footwear and related products through its retail stores in approximately 30 states within the continental United States and in Puerto Rico. It also offers online shopping on its e-commerce site at www.shoecarnival.com. Its products assortment includes dress and casual shoes, sandals, boots and an assortment of athletic for the entire family in four general categories-women’s, men’s, children’s and athletics. In addition to footwear, its stores carry selected accessory items, such as socks, belts, shoe care items, handbags, sport bags, backpacks, jewelry, scarves and wallets. It classifies athletic shoes by functionality, such as running, basketball or fitness shoes. As of January 28, 2017, it operated 415 stores in 35 states and Puerto Rico and offered online shopping at www.shoecarnival.com.

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