Critical Analysis: Industria de Diseno Textil (OTCMKTS:IDEXY) vs. Deckers Outdoor (NYSE:DECK)

Industria de Diseno Textil (OTCMKTS:IDEXY) and Deckers Outdoor (NYSE:DECK) are both large-cap retail/wholesale companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, risk, valuation, institutional ownership, profitability and dividends.

Insider & Institutional Ownership

97.8% of Deckers Outdoor shares are owned by institutional investors. 0.4% of Deckers Outdoor shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Industria de Diseno Textil and Deckers Outdoor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Industria de Diseno Textil	15.40%	32.94%	17.22%
Deckers Outdoor	19.47%	40.54%	26.95%

Analyst Recommendations

This is a summary of recent ratings for Industria de Diseno Textil and Deckers Outdoor, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Industria de Diseno Textil	0	0	1	5	3.83
Deckers Outdoor	3	11	8	2	2.38

Deckers Outdoor has a consensus price target of $117.58, indicating a potential upside of 17.76%. Given Deckers Outdoor’s higher probable upside, analysts clearly believe Deckers Outdoor is more favorable than Industria de Diseno Textil.

Risk and Volatility

Industria de Diseno Textil has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500. Comparatively, Deckers Outdoor has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500.

Earnings & Valuation

This table compares Industria de Diseno Textil and Deckers Outdoor”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Industria de Diseno Textil	$41.81 billion	4.82	$6.32 billion	$0.55	29.40
Deckers Outdoor	$4.99 billion	2.92	$966.09 million	$6.75	14.79

Industria de Diseno Textil has higher revenue and earnings than Deckers Outdoor. Deckers Outdoor is trading at a lower price-to-earnings ratio than Industria de Diseno Textil, indicating that it is currently the more affordable of the two stocks.

Summary

Deckers Outdoor beats Industria de Diseno Textil on 9 of the 15 factors compared between the two stocks.

About Industria de Diseno Textil

Industria de Diseño Textil, S.A. engages in the retail and online distribution of clothing, footwear, accessories, and household products. The company sells its products under the Zara, Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, and Zara Home brands. It is also involved in the textile manufacturing, logistics, design, insurance, construction, and real estate businesses, as well as provides financial services. The company operates in Spain, rest of Europe, the Americas, Asia, and internationally. Industria de Diseño Textil, S.A. was founded in 1963 and is headquartered in A Coruña, Spain.

About Deckers Outdoor

Deckers Outdoor Corporation, together with its subsidiaries, designs, markets, and distributes footwear, apparel, and accessories for casual lifestyle use and high-performance activities in the United States and internationally. The company offers premium footwear, apparel, and accessories under the UGG brand name; footwear, apparel, and accessories for ultra-runners and athletes under the HOKA brand name; and sandals, shoes, and boots under the Teva brand name. It also provides relaxed casual shoes and sandals under the Sanuk brand name; casual footwear fashion line under the Koolaburra brand name; and footwear under the AHNU brand name. The company sells its products through domestic and international retailers; international distributors; and directly to its consumers through its direct-to-consumer business, which includes e-commerce websites and retail stores. Deckers Outdoor Corporation was founded in 1973 and is headquartered in Goleta, California.