Head to Head Analysis: Designer Brands (DBI) versus Finish Line (FINL)

Designer Brands (NYSE:DBI) and Finish Line (NASDAQ:FINL) are both retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.

Valuation & Earnings

This table compares Designer Brands and Finish Line’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Designer Brands $3.18 billion 0.54 -$20.47 million $1.66 13.13
Finish Line N/A N/A N/A N/A N/A

Finish Line has lower revenue, but higher earnings than Designer Brands.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Designer Brands and Finish Line, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Designer Brands 0 0 0 1 4.00
Finish Line 0 2 0 0 2.00

Designer Brands presently has a consensus target price of $23.00, indicating a potential upside of 5.50%. Finish Line has a consensus target price of $15.00, indicating a potential upside of 11.03%. Given Finish Line’s higher possible upside, analysts plainly believe Finish Line is more favorable than Designer Brands.

Profitability

This table compares Designer Brands and Finish Line’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Designer Brands -0.64% 14.76% 9.03%
Finish Line N/A N/A N/A

Insider and Institutional Ownership

86.2% of Designer Brands shares are owned by institutional investors. Comparatively, 88.6% of Finish Line shares are owned by institutional investors. 17.4% of Designer Brands shares are owned by insiders. Comparatively, 6.0% of Finish Line shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

Designer Brands pays an annual dividend of $1.00 per share and has a dividend yield of 4.6%. Finish Line pays an annual dividend of $0.46 per share and has a dividend yield of 3.4%. Designer Brands pays out 60.2% of its earnings in the form of a dividend. Finish Line has raised its dividend for 9 consecutive years.

Summary

Designer Brands beats Finish Line on 7 of the 12 factors compared between the two stocks.

Designer Brands Company Profile

Designer Brands Inc. designs, producers, and retails footwear and accessories for women, men, and kids primarily in North America. It operates through three segments: The U.S. Retail, the Canada Retail, and the Brand Portfolio. The company also provides handbags, hosiery, jewelry, and other accessories. The company offers its products under the Vince Camuto, Louise et Cie, Sole Society, CC Corso Como, Enzo Angiolini, Jessica Simpson, Lucky, and other brands. It operates vincecamuto.com and solesociety.com e-commerce sites. As of March 21, 2019, it operated a portfolio of retail stores in approximately 1,000 locations. Designer Brands Inc. is based in Columbus, Ohio.

Finish Line Company Profile

The Finish Line, Inc., together with its subsidiaries, operates as a retailer of athletic shoes, apparel, and accessories for men, women, and kids in the United States. The company offers athletic shoes, as well as an assortment of apparel and accessories of Nike, Brand Jordan, adidas, Under Armour, Puma, and other brands. It engages in the in-store and online retail of athletic shoes for Macy's Retail Holdings, Inc.; Macy's Puerto Rico, Inc.; and Macys.com, Inc., as well as online at macys.com. As of April 2, 2017, the company operated 573 Finish Line stores in 44 states in the United States and Puerto Rico. It also operates e-commerce site, finishline.com and mobile commerce site, m.finishline.com. The company was founded in 1976 and is based in Indianapolis, Indiana.

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