Critical Contrast: Stein Mart (OTCMKTS:SMRTQ) and Shoe Carnival (NASDAQ:SHOE)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Stein Mart	N/A	N/A	N/A
Shoe Carnival	3.31%	7.24%	4.19%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stein Mart	N/A	N/A	N/A	N/A	N/A
Shoe Carnival	$1.14 billion	0.34	$52.27 million	$1.35	10.51

Shoe Carnival has higher revenue and earnings than Stein Mart.

Analyst Recommendations

This is a summary of recent ratings for Stein Mart and Shoe Carnival, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stein Mart	0	0	0	0	0.00
Shoe Carnival	0	2	0	1	2.67

Shoe Carnival has a consensus target price of $22.00, suggesting a potential upside of 54.98%. Given Shoe Carnival’s stronger consensus rating and higher probable upside, analysts clearly believe Shoe Carnival is more favorable than Stein Mart.

Insider and Institutional Ownership

66.0% of Shoe Carnival shares are held by institutional investors. 39.4% of Stein Mart shares are held by insiders. Comparatively, 33.6% of Shoe Carnival shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Shoe Carnival beats Stein Mart on 8 of the 9 factors compared between the two stocks.

About Stein Mart

Stein Mart, Inc., a specialty omnichannel off-price retailer, offers designer and name-brand fashion apparels, home décor merchandise, accessories, and shoes at everyday discount prices in the United States. The company's stores also provides endless aisle, a mobile technology to locate products; a SMart Rewards loyalty program; co-branded and private label credit card programs; and electronic gift cards. As of June 3, 2020, it operated 281 stores in 30 states. The company also sells its products through an online retail selling site. Stein Mart, Inc. was founded in 1908 and is headquartered in Jacksonville, Florida. On August 12, 2020, Stein Mart, Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Middle District of Florida.

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.