Comparing Amer Sports (NYSE:AS) & Crocs (NASDAQ:CROX)

Amer Sports (NYSE:AS) and Crocs (NASDAQ:CROX) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, risk, earnings, analyst recommendations, dividends and valuation.

Institutional and Insider Ownership

40.3% of Amer Sports shares are held by institutional investors. Comparatively, 93.4% of Crocs shares are held by institutional investors. 3.1% of Crocs shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Amer Sports and Crocs”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amer Sports	$6.57 billion	2.52	$427.40 million	$0.95	31.51
Crocs	$4.05 billion	1.41	-$81.20 million	$11.57	10.33

Amer Sports has higher revenue and earnings than Crocs. Crocs is trading at a lower price-to-earnings ratio than Amer Sports, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Amer Sports and Crocs, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amer Sports	0	3	12	1	2.88
Crocs	1	6	11	1	2.63

Amer Sports currently has a consensus target price of $44.59, suggesting a potential upside of 48.94%. Crocs has a consensus target price of $141.20, suggesting a potential upside of 18.11%. Given Amer Sports’ stronger consensus rating and higher possible upside, research analysts plainly believe Amer Sports is more favorable than Crocs.

Volatility & Risk

Amer Sports has a beta of 2.04, suggesting that its stock price is 104% more volatile than the S&P 500. Comparatively, Crocs has a beta of 1.56, suggesting that its stock price is 56% more volatile than the S&P 500.

Profitability

This table compares Amer Sports and Crocs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Amer Sports	7.35%	11.18%	7.02%
Crocs	14.64%	47.75%	15.20%

Summary

Amer Sports beats Crocs on 8 of the 14 factors compared between the two stocks.

About Amer Sports

Amer Sports, Inc. designs, manufactures, markets, distributes, and sells sports equipment, apparel, footwear, and accessories in Europe, the Middle East, Africa, the Americas, China, and the Asia Pacific. It operates through three segments: Technical Apparel, Outdoor Performance, and Ball & Racquet Sports. The Technical Apparel segment offers outdoor apparel, footwear, and accessories which includes climbing gear. The Outdoor Performance segment provides hiking and running footwear, functional apparel, skiing and snowboarding gear, and lifestyle footwear. The Ball & Racquet Sports segment offers sports equipment for tennis, baseball, american football, basketball, golf, and various other professional and recreational sports. This segment provides custom-fitting protective gear and apparel for baseball, softball, football, and lacrosse. It sells its products under the Arc'teryx, PeakPerformance, Salomon, Atomic, Armada, ENVE, Wilson, Louisville Slugger, DeMarini, EvoShield, and ATEC brands. The company distributes its products through retail stores, general sporting goods retailers, specialty stores, independently operated partner stores, and distributors, as well as its e-commerce websites, and retailer-owned and third-party e-commerce websites. The company was formerly known as Amer Sports Management Holding (Cayman) Limited and changed its name to Amer Sports, Inc. in August 2023. Amer Sports, Inc. was founded in 1950 and is based in Helsinki, Finland.

About Crocs

Crocs, Inc., together with its subsidiaries, designs, develops, manufactures, markets, distributes, and sells casual lifestyle footwear and accessories for men, women, and children under Crocs and HEYDUDE Brand in the United States and internationally. The company offers various footwear products, including clogs, sandals, slides, flips, wedges, platforms, socks, boots, charms, flip flops, sneakers, and slippers. It sells its products through wholesalers, retail stores, e-commerce sites, third-party marketplaces, and kiosks/store-in-store locations. Crocs, Inc. was founded in 1999 and is headquartered in Broomfield, Colorado.