Skechers U.S.A. vs Birkenstock Which Is a Better Investment?

Skechers U.S.A. and Birkenstock are two popular footwear companies known for their comfortable and stylish designs. While Skechers is a mass-market brand offering a wide range of athletic and casual shoes, Birkenstock is a high-end brand specializing in orthopedic sandals and clogs. Both companies have a loyal customer base and strong brand recognition, but their stocks have performed differently in the market. In this comparison, we will analyze the financial performance and potential growth prospects of Skechers U.S.A. and Birkenstock stocks.

Skechers U.S.A. or Birkenstock?

When comparing Skechers U.S.A. 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 Skechers U.S.A. 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. Skechers U.S.A. 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. Skechers U.S.A. 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 Skechers U.S.A. P/E ratio at 16.97 and Birkenstock's P/E ratio at 86.72. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Skechers U.S.A. P/B ratio is 2.44 while Birkenstock's P/B ratio is 3.64.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Skechers U.S.A. has seen a 5-year revenue growth of 0.74%, while Birkenstock's is 1.10%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Skechers U.S.A.'s ROE at 14.98% and Birkenstock's ROE at 4.41%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $69.88 for Skechers U.S.A. and $52.79 for Birkenstock. Over the past year, Skechers U.S.A.'s prices ranged from $55.67 to $75.09, with a yearly change of 34.88%. Birkenstock's prices fluctuated between $41.00 and $64.78, with a yearly change of 58.00%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.