Nike (NKE 0.46%) and Deckers Outdoor (DECK 2.42%) are two stocks that have been struggling this year. The former is down 24%, while the latter has nosedived a whopping 46%. These companies rely on discretionary spending, which means they can both be vulnerable to a slowdown in the economy this year, especially as tariffs add costs for consumers.

While neither of these stocks is a particularly safe buy right now, which one may be the better option for contrarian investors to consider for their portfolios?

Deckers has been a far better growth stock

Nike is the behemoth in the footwear industry and has the advantage of being the larger, much more recognizable company. But that hasn't been translating into better growth in recent years. Deckers has been growing by double digits for multiple quarters, while Nike is struggling to keep its top line from falling.

NKE Operating Revenue (Quarterly YoY Growth) data by YCharts

Rather than focusing primarily on performance such as Nike, Deckers' brands cater to a more diverse customer market, which can work to its advantage and make it easier for its business to grow. And with its annual sales being close to one-tenth of Nike's ($5 billion versus around $50 billion), the scale of revenue it will need to generate to maintain a high growth rate will also not need to be as significant; being the smaller business can have its advantages.

Their valuations are comparable

Both stocks have seen their valuations come down sharply this year, and there was more of a gap between them in the past, but now they are hovering around similar price-to-earnings (P/E) multiples.

NKE PE Ratio data by YCharts

Nike is trading at only a slightly higher valuation than Deckers, despite it commanding a much larger presence and possessing a much stronger brand.

Which company has a brighter future?

Deckers is generating some excellent growth right now, and while it may face challenges due to tariffs and slowing economic conditions, its long-term trajectory still looks promising given the many different product lines it has and categories it's in, including boots, slippers, athletic, hiking, and lifestyle shoes.

Nike, meanwhile, is in the midst of a transition, one that looks to be both long and uncertain. While management may believe reconnecting with retailers and launching new innovations can help reinvigorate the brand, I fear the greater issue is affordability. In recent years, fast fashion has been rising in popularity, and with consumers prioritizing cheaper options, it may be difficult for Nike to remain competitive. It has a strong brand, but its products are also expensive, and I'm skeptical about whether it can get back to generating high growth numbers again.

Deckers looks like the far better option today

Deckers has a better growth rate and is trading at a lower P/E ratio than Nike, without all of the problems and question marks that come with a turnaround strategy. At this stage, Deckers looks to be the safer shoe stock to own, despite its mammoth decline in value this year. While there is risk here, if you're willing to be patient, this could be a good long-term buy.