Reviewing Crocs (CROX) and The Competition

Crocs (NASDAQ: CROX) is one of 3 public companies in the “Rubber & plastics footwear” industry, but how does it compare to its rivals? We will compare Crocs to related companies based on the strength of its profitability, analyst recommendations, institutional ownership, valuation, risk, dividends and earnings.

Analyst Ratings

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This is a breakdown of current recommendations for Crocs and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Crocs 1 3 3 0 2.29
Crocs Competitors 63 552 879 26 2.57

Crocs currently has a consensus target price of $10.17, indicating a potential downside of 37.44%. As a group, “Rubber & plastics footwear” companies have a potential downside of 1.21%. Given Crocs’ rivals stronger consensus rating and higher probable upside, analysts clearly believe Crocs has less favorable growth aspects than its rivals.

Valuation and Earnings

This table compares Crocs and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Crocs $1.02 billion $10.23 million -812.50
Crocs Competitors $12.39 billion $1.42 billion -254.15

Crocs’ rivals have higher revenue and earnings than Crocs. Crocs is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Insider & Institutional Ownership

99.8% of Crocs shares are held by institutional investors. Comparatively, 88.3% of shares of all “Rubber & plastics footwear” companies are held by institutional investors. 1.4% of Crocs shares are held by insiders. Comparatively, 2.4% of shares of all “Rubber & plastics footwear” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Crocs and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Crocs 1.00% 6.19% 2.36%
Crocs Competitors 3.43% 19.10% 10.40%

Risk and Volatility

Crocs has a beta of 0.55, indicating that its stock price is 45% less volatile than the S&P 500. Comparatively, Crocs’ rivals have a beta of 0.80, indicating that their average stock price is 20% less volatile than the S&P 500.

Summary

Crocs rivals beat Crocs on 12 of the 13 factors compared.

Crocs Company Profile

Crocs, Inc. is engaged in the design, development, manufacturing, marketing, distribution and sale of casual lifestyle footwear and accessories for men, women, and children. The Company’s segments include Americas, Asia Pacific and Europe. Its products include footwear and accessories that utilize its closed-cell resin, called Croslite, as well as casual lifestyle footwear that use a range of materials. Its Croslite material enables the Company to produce non-marking, and odor-resistant footwear. As of December 31, 2016, the Company sold its products in over 90 countries through domestic and international retailers and distributors, and directly to consumers through its company-operated retail stores, outlets, e-commerce store sites and kiosks. The Company’s sales channels include wholesale, which includes distributors, Crocs owned retail and Crocs e-commerce.

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