Shoe Carnival (NASDAQ:SCVL) & Aritzia (OTCMKTS:ATZAF) Critical Analysis

Shoe Carnival (NASDAQ:SCVL) and Aritzia (OTCMKTS:ATZAF) are both retail/wholesale companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.

Analyst Recommendations

This is a summary of current ratings and target prices for Shoe Carnival and Aritzia, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shoe Carnival	0	1	1	0	2.50
Aritzia	0	0	1	0	3.00

Shoe Carnival currently has a consensus target price of $42.00, suggesting a potential downside of 6.00%. Aritzia has a consensus target price of $42.50, suggesting a potential upside of 16.06%. Given Aritzia’s stronger consensus rating and higher probable upside, analysts plainly believe Aritzia is more favorable than Shoe Carnival.

Insider and Institutional Ownership

66.1% of Shoe Carnival shares are owned by institutional investors. 34.7% of Shoe Carnival shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Shoe Carnival and Aritzia”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shoe Carnival	$1.23 billion	0.98	$73.35 million	$2.71	16.49
Aritzia	N/A	N/A	N/A	N/A	N/A

Shoe Carnival has higher revenue and earnings than Aritzia.

Profitability

This table compares Shoe Carnival and Aritzia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shoe Carnival	6.26%	13.26%	7.35%
Aritzia	N/A	N/A	N/A

Summary

Shoe Carnival beats Aritzia on 6 of the 8 factors compared between the two stocks.

About Shoe Carnival

Shoe Carnival, Inc., together with its subsidiaries, operates as a family footwear retailer in the United States. The company offers range of dress, casual, work, and athletic shoes, as well as sandals and boots for men, women, and children; and various accessories. The company also operates stores, and sells its products through online shopping at shoecarnival.com, as well as through mobile app. Shoe Carnival, Inc. was founded in 1978 and is headquartered in Evansville, Indiana.

About Aritzia

Aritzia Inc., together with its subsidiaries, designs and sells apparel and accessories for women in the United States and Canada. The company offers t-shirts and tops, sweaters, shirts and blouses, bodysuits, sweatshirts, blazers, jacket and coats, and dresses; pants, denim, leggings and bike shorts, sweatpants, skirts, shorts, sweatshorts, and jumpsuits and rompers; accessories, such as socks, hats, bags, scarves, belts, and intimates; swimwear; and shoes. It offers its products under the Wilfred, Wilfred Free, Babaton, The Group by Babaton, Babaton 101, Ten by Babaton, Tna, Little Moon, Sunday Best, Super World, TnAction, Denim Forum, Auxiliary, Talula, Tna x EMU, New Era, and Merrell brands. The company was formerly known as Aritzia Capital Corporation and changed its name to Aritzia Inc. in August 2016. Aritzia Inc. was founded in 1984 and is headquartered in Vancouver, Canada.