Investors are weighing the merits of two consumer discretionary stocks: Crocs (NASDAQ: CROX) and Savers Value Village (NYSE: SVV). Both companies present unique opportunities, but a comparative analysis reveals significant differences in dividend strength, analyst ratings, profitability, and institutional ownership.
Analyst Ratings and Price Targets
According to data from MarketBeat, Crocs currently holds a consensus price target of $103.42, suggesting a potential upside of 27.88%. In contrast, Savers Value Village boasts a higher consensus price target of $13.67, which indicates a more substantial potential upside of 53.82%.
This disparity in expectations has led analysts to favor Savers Value Village over Crocs, highlighting a stronger outlook for the second-hand retail company. The more favorable rating for Savers reflects its perceived growth potential relative to Crocs.
Revenue, Earnings, and Valuation
When examining financial metrics, Crocs edges out Savers Value Village in gross revenue and earnings per share. However, Savers is trading at a lower price-to-earnings ratio, which may attract investors looking for more affordable options in the market.
Such financial insights are critical for investors weighing the trade-offs between current profitability and future growth potential. While Crocs demonstrates higher earnings, the valuation metrics suggest Savers may offer a compelling entry point for investors.
Ownership Structure
Institutional ownership serves as a gauge of investor confidence. Approximately 93.4% of Crocs shares are owned by institutional investors, while Savers Value Village has an even higher institutional ownership rate of 98.8%. Additionally, insider ownership stands at 3.0% for Crocs and 3.1% for Savers. These figures underscore strong endorsements from both institutional investors and company insiders in both firms.
High institutional ownership often reflects confidence in a company’s long-term prospects, suggesting that both Crocs and Savers Value Village have the backing of influential financial entities.
Company Profiles
Crocs, Inc., established in 1999 and headquartered in Broomfield, Colorado, specializes in designing and selling casual lifestyle footwear and accessories. The company’s diverse product range includes clogs, sandals, and sneakers, distributed through various channels including wholesalers and e-commerce platforms.
Savers Value Village, Inc., founded in 1954 and based in Bellevue, Washington, operates retail stores selling second-hand merchandise across the United States, Canada, and Australia. The company processes and sells a wide array of items, including clothing, housewares, and accessories, sourced from non-profit partners.
In January 2022, the firm rebranded from S-Evergreen Holding LLC to Savers Value Village, signaling a renewed focus on its core business model.
In summary, while Crocs demonstrates strength in revenue and earnings, Savers Value Village offers a more attractive valuation and higher growth potential according to analyst ratings. Investors must weigh these factors carefully when considering their next market move.
