Crocs vs NIKE Which Is a Smarter Choice?

Crocs and Nike are both prominent companies in the footwear industry, but they cater to different market segments. Crocs, known for their colorful and comfortable clogs, have seen a resurgence in popularity in recent years. On the other hand, Nike is a global powerhouse in athletic footwear and apparel. Both companies have experienced fluctuations in their stock prices due to various factors such as consumer demand, economic conditions, and competition. This comparison will explore the performance of Crocs and Nike stocks and analyze the factors driving their respective valuations.

Crocs or NIKE?

When comparing Crocs and NIKE, 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 NIKE.

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 NIKE has a dividend yield of 1.95%. 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, NIKE reports a 5-year dividend growth of 11.13% year and a payout ratio of 41.56%.

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 7.90 and NIKE's P/E ratio at 21.83. 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 3.82 while NIKE's P/B ratio is 8.30.

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 NIKE's is 0.47%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Crocs's ROE at 51.93% and NIKE's ROE at 37.37%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $110.33 for Crocs and $76.77 for NIKE. Over the past year, Crocs's prices ranged from $85.71 to $165.32, with a yearly change of 92.88%. NIKE's prices fluctuated between $70.75 and $123.39, with a yearly change of 74.40%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.