Why Deckers Outdoor Is a Smarter Bet Than Yeti Holdings in 2026

In the competitive landscape of consumer goods, investors seeking growth opportunities in 2026 must weigh valuation metrics and international expansion potential with precision. Two prominent names-Deckers Outdoor Corporation (DECK) and YETI Holdings (YETI)-stand out, but a closer examination of their fundamentals reveals why Deckers Outdoor is the more compelling investment.

Valuation Attractiveness: A Clear Edge for Deckers

Deckers Outdoor's valuation metrics present a compelling case for undervaluation relative to its growth prospects. As of January 3, 2026, the company trades at a trailing price-to-earnings (P/E) ratio of 15.87 and a forward P/E of 15.48, significantly lower than YETI's trailing P/E of 23.11. This disparity suggests that investors are paying a premium for YETI's earnings while receiving a more affordable entry point for Deckers.

The price-to-earnings-to-growth (PEG) ratio further underscores this dynamic. Deckers' PEG ratio of 1.73, based on five-year expected growth, indicates that its stock price is justified by its growth trajectory. In contrast, YETI's PEG ratio of 2.4x implies that its valuation is stretched relative to its projected earnings growth as reported by Simply Wall St. For value-conscious investors, this means Deckers offers a more favorable risk-reward profile, as it trades at a discount to its intrinsic growth potential.

Additionally, YETI's enterprise value-to-EBITDA (EV/EBITDA) ratio of 13x, while lower than its historical average of 22.9x, still lags behind the implied multiples of Deckers. Though YETI's EV/EBITDA suggests a potential rebound in valuation efficiency, the absence of comparable data for Deckers does not detract from its overall attractiveness, given its superior P/E and PEG metrics.

International Growth: Deckers' Global Momentum Outpaces YETI's Ambitions

Both companies have prioritized international expansion, but Deckers Outdoor has executed its strategy with greater velocity and scale. In fiscal 2026, Deckers reported a 49.7% year-over-year surge in international sales.
Driven by HOKA and UGG's dominance in the EMEA and APAC regions, HOKA's international wholesale revenue alone grew 30% YoY, while UGG's international sales rose 19%, fueled by strong demand in China and Europe. This performance is underpinned by a robust direct-to-consumer (DTC) model, which accounted for 45% of total revenue in FY2024, reflecting a mature and scalable global infrastructure.

YETI, while making strides, lags behind in execution. Its international sales grew 14% YoY in Q3 2025, reaching $100.4 million, with 20% of total revenue now derived from global markets. While the company has expanded into Japan and plans to enter Malaysia, Singapore, and the Philippines, its international footprint remains smaller and less diversified compared to Deckers. Moreover, YETI's supply chain reconfiguration-aimed at reducing reliance on China-temporarily dented 2025 growth, particularly in the drinkware segment. Though these challenges are expected to resolve by early 2026, they highlight operational risks that could delay YETI's global ambitions.

Deckers' localized marketing strategies and e-commerce investments further solidify its advantage. By tailoring campaigns to regional preferences and expanding DTC retail presence, the company has capitalized on high-margin, brand-loyal customer bases in key markets. YETI, while emphasizing product innovation and omni-channel development, has yet to match this level of regional penetration or DTC maturity.

Conclusion: A Strategic Case for Deckers Outdoor

For investors targeting 2026, the choice between Deckers Outdoor and YETI Holdings hinges on valuation discipline and executional excellence. Deckers' lower P/E and PEG ratios, coupled with its outperforming international sales and DTC infrastructure, position it as a more attractive bet. While YETI's global aspirations are valid, its current valuation and operational headwinds suggest a higher-risk path to growth. In a market where margins and scalability matter, Deckers Outdoor's strategic advantages make it the smarter investment.