Financial Survey: Xcel Brands (NASDAQ:XELB) and Birkenstock (NYSE:BIRK)

Xcel Brands (NASDAQ:XELB) and Birkenstock (NYSE:BIRK) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, analyst recommendations, earnings, valuation and profitability.

Risk & Volatility

Xcel Brands has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500. Comparatively, Birkenstock has a beta of 1.3, meaning that its stock price is 30% more volatile than the S&P 500.

Profitability

This table compares Xcel Brands and Birkenstock’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Xcel Brands	-343.68%	-109.17%	-42.19%
Birkenstock	14.82%	13.36%	7.21%

Insider and Institutional Ownership

18.5% of Xcel Brands shares are owned by institutional investors. Comparatively, 19.9% of Birkenstock shares are owned by institutional investors. 29.5% of Xcel Brands shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Xcel Brands and Birkenstock, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xcel Brands	1	0	1	0	2.00
Birkenstock	1	4	13	0	2.67

Xcel Brands currently has a consensus price target of $3.00, suggesting a potential upside of 245.22%. Birkenstock has a consensus price target of $53.91, suggesting a potential upside of 51.12%. Given Xcel Brands’ higher possible upside, equities research analysts plainly believe Xcel Brands is more favorable than Birkenstock.

Earnings and Valuation

This table compares Xcel Brands and Birkenstock”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xcel Brands	$4.94 million	1.15	-$17.46 million	($3.39)	-0.26
Birkenstock	$2.32 billion	2.74	$385.46 million	$2.13	16.75

Birkenstock has higher revenue and earnings than Xcel Brands. Xcel Brands is trading at a lower price-to-earnings ratio than Birkenstock, indicating that it is currently the more affordable of the two stocks.

Summary

Birkenstock beats Xcel Brands on 12 of the 14 factors compared between the two stocks.

About Xcel Brands

Xcel Brands, Inc., together with its subsidiaries, operates as a media and consumer products company in the United States. The company designs, produces, markets, wholesales, and sells branded apparel, footwear, accessories, jewelry, home goods, and other consumer products; and acquires consumer lifestyle brands, including the Isaac Mizrahi, the LOGO by Lori Goldstein, the Judith Ripka, the Halston brand, the C Wonder, the TowerHill by Christie Brinkley brand (the CB brand), and other brands, as well as manages the Longaberger brand. It licenses its brands to third parties; and designs, produces, markets, and distributes through an omni-channel retail sales strategy, which include distribution through interactive television, digital live-stream shopping, brick-and-mortar retail, and e-commerce channels. The company also offers live streaming, social media and other marketing, and public relations support for its brands. In addition, it markets its brands through www.isaacmizrahi.com; www.halston.com; www.judithripka.com; www.cwonder.com; www.lorigoldstein.com; and www.longaberger.com. Xcel Brands, Inc. was founded in 2011 and is headquartered in New York, New York.

About Birkenstock

Birkenstock Holding plc manufactures and sells footwear products. It also offers sandals, shoes, closed-toe silhouettes, skincare products, and accessories. The company sells its products through e-commerce sites and a network of owned retail stores, as well as business-to-business channels. It operates in the United States, Brazil, Canada, Mexico, Europe, APMA, and internationally. Birkenstock Holding plc was founded in 1774 and is based in London, the United Kingdom. Birkenstock Holding plc is a subsidiary of BK LC Lux MidCo S.à r.l.