Critical Review: Iconix Brand Group (NASDAQ:ICON) versus McRae Industries (NASDAQ:MCRAA)

McRae Industries (OTCMKTS:MCRAA) and Iconix Brand Group (NASDAQ:ICON) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, earnings, risk, valuation, analyst recommendations and institutional ownership.

Valuation & Earnings

This table compares McRae Industries and Iconix Brand Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
McRae Industries $69.31 million 0.57 -$110,000.00 N/A N/A
Iconix Brand Group $148.98 million 0.06 -$111.51 million N/A N/A

McRae Industries has higher earnings, but lower revenue than Iconix Brand Group.

Volatility & Risk

McRae Industries has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500. Comparatively, Iconix Brand Group has a beta of 2.22, meaning that its stock price is 122% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for McRae Industries and Iconix Brand Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
McRae Industries 0 0 0 0 N/A
Iconix Brand Group 0 0 0 0 N/A

Institutional and Insider Ownership

10.7% of Iconix Brand Group shares are owned by institutional investors. 30.3% of McRae Industries shares are owned by company insiders. Comparatively, 4.7% of Iconix Brand Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares McRae Industries and Iconix Brand Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
McRae Industries -0.16% N/A N/A
Iconix Brand Group -131.63% N/A -23.58%

Summary

McRae Industries beats Iconix Brand Group on 5 of the 9 factors compared between the two stocks.

McRae Industries Company Profile

McRae Industries, Inc. manufactures and sells military combat boots for the United States Army. The company also imports and sells western and work boots. It offers its products for men, women, and children under the Dan Post, Laredo Western Boots, Dingo, John Deere, Johnny Poppers, McRae Industrial, and McRae Footwear brand names. McRae Industries, Inc. was founded in 1959 and is headquartered in Mount Gilead, North Carolina.

Iconix Brand Group Company Profile

Iconix Brand Group, Inc. is a brand management company. As of December 31, 2016, the Company owned a portfolio of over 30 global consumer brands across women’s, men’s, and home categories. The Company operates through segments: men’s, women’s, home and international. The Company’s brand portfolio includes brands, such as Candie’s, Bongo, Joe Boxer, Rampage, Mudd, London Fog, Mossimo, Ocean Pacific/OP, Danskin/Danskin Now, Rocawear/Roc Nation, Cannon, Royal Velvet, Fieldcrest, Charisma, Starter, Waverly, Ecko Unltd/Mark Ecko Cut & Sew, Zoo York, Umbro, Lee Cooper and Artful Dodger, and interests in Material Girl, Ed Hardy, Truth or Dare, Modern Amusement, Buffalo, Nick Graham Hydraulic and PONY brands. It operates in various geographic regions, including the United States, Japan and Other (which principally represent Latin America and Europe).

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