Crocs vs Birkenstock Which Is a Smarter Choice?

Crocs and Birkenstock are two popular footwear brands that have gained a significant following in recent years. While both offer comfortable and stylish options for consumers, they differ in terms of design, materials, and overall aesthetic. Crocs are known for their lightweight, clog-style shoes with signature holes, while Birkenstock is renowned for their classic, contoured footbed sandals. Investors may find value in comparing the performance and potential of these two stocks in the footwear market.

Crocs or Birkenstock?

When comparing Crocs and Birkenstock, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Crocs and Birkenstock.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Crocs has a dividend yield of -%, while Birkenstock has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Crocs reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Birkenstock reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Crocs P/E ratio at 7.28 and Birkenstock's P/E ratio at 74.26. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Crocs P/B ratio is 3.52 while Birkenstock's P/B ratio is 3.12.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Crocs has seen a 5-year revenue growth of 3.06%, while Birkenstock's is 1.10%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Crocs's ROE at 51.93% and Birkenstock's ROE at 4.41%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $101.91 for Crocs and $46.05 for Birkenstock. Over the past year, Crocs's prices ranged from $77.16 to $165.32, with a yearly change of 114.26%. Birkenstock's prices fluctuated between $38.50 and $64.78, with a yearly change of 68.26%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.