Birkenstock (BIRK) versus Its Peers Critical Review

Birkenstock (NYSE:BIRK) is one of 116 publicly-traded companies in the “Textiles, Apparel & Luxury Goods” industry, but how does it compare to its competitors? We will compare Birkenstock to similar businesses based on the strength of its earnings, dividends, institutional ownership, risk, valuation, profitability and analyst recommendations.

Profitability

This table compares Birkenstock and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Birkenstock	16.26%	12.95%	7.15%
Birkenstock Competitors	-4.06%	13.23%	2.60%

Valuation & Earnings

This table compares Birkenstock and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Birkenstock	$2.32 billion	$385.46 million	18.01
Birkenstock Competitors	$5.78 billion	$471.21 million	27.45

Birkenstock’s competitors have higher revenue and earnings than Birkenstock. Birkenstock is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

Birkenstock has a beta of 1.3, suggesting that its stock price is 30% more volatile than the S&P 500. Comparatively, Birkenstock’s competitors have a beta of 1.01, suggesting that their average stock price is 1% more volatile than the S&P 500.

Institutional and Insider Ownership

19.9% of Birkenstock shares are held by institutional investors. Comparatively, 54.9% of shares of all “Textiles, Apparel & Luxury Goods” companies are held by institutional investors. 15.3% of shares of all “Textiles, Apparel & Luxury Goods” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Birkenstock and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Birkenstock	1	4	13	0	2.67
Birkenstock Competitors	1533	7491	10042	336	2.47

Birkenstock presently has a consensus target price of $53.28, suggesting a potential upside of 33.87%. As a group, “Textiles, Apparel & Luxury Goods” companies have a potential upside of 8.54%. Given Birkenstock’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Birkenstock is more favorable than its competitors.

Summary

Birkenstock competitors beat Birkenstock on 7 of the 13 factors compared.

Birkenstock Company Profile

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.