a.k.a. Brands (NYSE:AKA) & Shoe Carnival (NASDAQ:SHOE) Head to Head Analysis

Shoe Carnival (NASDAQ:SHOE) and a.k.a. Brands (NYSE:AKA) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, risk, dividends, analyst recommendations, institutional ownership and earnings.

Profitability

This table compares Shoe Carnival and a.k.a. Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shoe Carnival	2.20%	5.32%	3.08%
a.k.a. Brands	-4.43%	-20.93%	-5.17%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shoe Carnival	$1.11 billion	0.37	$52.27 million	$0.88	16.91
a.k.a. Brands	$600.21 million	0.19	-$31.43 million	($2.48)	-4.11

Shoe Carnival has higher revenue and earnings than a.k.a. Brands. a.k.a. Brands is trading at a lower price-to-earnings ratio than Shoe Carnival, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Shoe Carnival has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500. Comparatively, a.k.a. Brands has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500.

Insider & Institutional Ownership

66.1% of Shoe Carnival shares are held by institutional investors. Comparatively, 55.3% of a.k.a. Brands shares are held by institutional investors. 33.6% of Shoe Carnival shares are held by insiders. Comparatively, 18.2% of a.k.a. Brands shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Shoe Carnival and a.k.a. Brands, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shoe Carnival	1	1	0	1	2.33
a.k.a. Brands	1	2	1	0	2.00

Shoe Carnival presently has a consensus target price of $22.00, suggesting a potential upside of 47.85%. a.k.a. Brands has a consensus target price of $19.00, suggesting a potential upside of 86.27%. Given a.k.a. Brands’ higher probable upside, analysts plainly believe a.k.a. Brands is more favorable than Shoe Carnival.

Summary

Shoe Carnival beats a.k.a. Brands on 13 of the 15 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 a.k.a. Brands

a.k.a. Brands Holding Corp. operates a portfolio of online fashion brands in the United States, Australia, and internationally. The company offers streetwear apparel, dresses, tops, bottoms, shoes, headwear, and accessories through its online stores under the Princess Polly, Petal & Pup, Culture Kings, and mnml brands. It also operates physical stores under the Culture Kings brand. The company was founded in 2018 and is headquartered in San Francisco, California.