Foot Locker vs Shoe Carnival Which Offers More Value?

Foot Locker and Shoe Carnival are two retail companies in the footwear industry that have garnered attention from investors. Foot Locker, a global leader in athletic shoes and apparel, boasts a strong brand presence and loyal customer base. On the other hand, Shoe Carnival is known for its wide selection of affordable shoes for the whole family. Both companies have seen fluctuations in their stock prices due to market trends and consumer buying habits. Investors must carefully consider factors such as financial performance, brand reputation, and market competition when deciding which stock to invest in.

Foot Locker or Shoe Carnival?

When comparing Foot Locker and Shoe Carnival, 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 Foot Locker and Shoe Carnival.

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. Foot Locker has a dividend yield of -%, while Shoe Carnival has a dividend yield of 1.53%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Foot Locker reports a 5-year dividend growth of 3.53% year and a payout ratio of 0.00%. On the other hand, Shoe Carnival reports a 5-year dividend growth of 5.75% year and a payout ratio of 24.13%.

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 Foot Locker P/E ratio at -4.86 and Shoe Carnival's P/E ratio at 12.47. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Foot Locker P/B ratio is 0.72 while Shoe Carnival's P/B ratio is 1.46.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Foot Locker has seen a 5-year revenue growth of 0.26%, while Shoe Carnival's is 0.27%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Foot Locker's ROE at -14.76% and Shoe Carnival's ROE at 12.26%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $21.15 for Foot Locker and $33.47 for Shoe Carnival. Over the past year, Foot Locker's prices ranged from $19.33 to $35.60, with a yearly change of 84.17%. Shoe Carnival's prices fluctuated between $24.94 and $46.92, with a yearly change of 88.13%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.