Financial Review: Exceed (EDSFF) & Rocky Brands (RCKY)

Exceed (OTCMKTS:EDSFF) and Rocky Brands (NASDAQ:RCKY) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, dividends, risk and institutional ownership.

Earnings and Valuation

This table compares Exceed and Rocky Brands’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Exceed N/A N/A N/A N/A N/A
Rocky Brands $253.20 million 0.81 $9.58 million $1.16 23.91

Rocky Brands has higher revenue and earnings than Exceed.

Dividends

Rocky Brands pays an annual dividend of $0.48 per share and has a dividend yield of 1.7%. Exceed does not pay a dividend. Rocky Brands pays out 41.4% of its earnings in the form of a dividend.

Profitability

This table compares Exceed and Rocky Brands’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Exceed N/A N/A N/A
Rocky Brands 6.08% 9.06% 7.06%

Volatility & Risk

Exceed has a beta of 0.06, indicating that its stock price is 94% less volatile than the S&P 500. Comparatively, Rocky Brands has a beta of 0.24, indicating that its stock price is 76% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Exceed and Rocky Brands, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Exceed 0 0 0 0 N/A
Rocky Brands 0 1 0 0 2.00

Rocky Brands has a consensus target price of $23.00, suggesting a potential downside of 17.06%. Given Rocky Brands’ higher probable upside, analysts clearly believe Rocky Brands is more favorable than Exceed.

Insider & Institutional Ownership

71.4% of Rocky Brands shares are held by institutional investors. 0.6% of Exceed shares are held by insiders. Comparatively, 8.5% of Rocky Brands shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Rocky Brands beats Exceed on 9 of the 10 factors compared between the two stocks.

About Exceed

Exceed Company Ltd. is engaged in the design, development, and wholesale of footwear, apparel, and accessories under the brand name of Xidelong in the People's Republic of China. It provides footwear products, including running, leisure, basketball, skateboarding, canvas, tennis, and outdoor footwear products; apparel products comprising sports tops, pants, jackets, track suits, and coats; and accessories, such as bags, socks, hats, and caps. The company offers its products for the customers aging between 15 to 35 years through various distributors. Exceed Company Ltd. was founded in 2001 and is based in Kowloon, Hong Kong.

About Rocky Brands

Rocky Brands, Inc. designs, manufactures, and markets footwear and apparel under the Rocky, Georgia Boot, Durango, Lehigh, and Michelin brand names in the United States, Canada, and internationally. The company operates through three segments: Wholesale, Retail, and Military. The Wholesale segment offers products in approximately 10,000 retail locations through a range of distribution channels comprising sporting goods stores, outdoor retailers, independent shoe retailers, hardware stores, catalogs, mass merchants, uniform stores, farm store chains, specialty safety stores, and specialty and online retailers. The Retail segment sells its products directly to consumers through its e-commerce Websites, including rockyboots.com, georgiaboot.com, durangoboot.com, lehighoutfitters.com, lehighsafetyshoes.com, slipgrips.com, and 4eursole.com; Rocky outlet store in Nelsonville, Ohio; and mobile and retail stores in New York City Transit Authority. The Military segment focuses on building footwear contracts with the U.S. military. The company offers footwear, apparel, and accessory items for hunting, fishing, camping, and hiking enthusiasts; industrial and construction workers; workers in the hospitality industry, such as restaurants or hotels; and law enforcement, security personnel, and postal employees, as well as to military personnel, farmers, ranchers, and fashion minded urban consumers. Rocky Brands, Inc. was founded in 1932 and is based in Nelsonville, Ohio.

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