Head to Head Review: Destination XL Group (NASDAQ:DXLG) vs. Next (OTCMKTS:NXGPY)

Destination XL Group (NASDAQ:DXLG) and Next (OTCMKTS:NXGPY) are both retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, risk, institutional ownership and valuation.

Profitability

This table compares Destination XL Group and Next’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Destination XL Group	-1.73%	-3.81%	-1.36%
Next	N/A	N/A	N/A

Institutional & Insider Ownership

73.5% of Destination XL Group shares are held by institutional investors. 14.3% of Destination XL Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

Destination XL Group has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500. Comparatively, Next has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500.

Earnings and Valuation

This table compares Destination XL Group and Next”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Destination XL Group	$467.02 million	0.10	$3.06 million	($0.14)	-6.09
Next	$7.82 billion	2.85	$938.45 million	N/A	N/A

Next has higher revenue and earnings than Destination XL Group.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Destination XL Group and Next, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Destination XL Group	1	0	1	0	2.00
Next	0	1	0	0	2.00

Destination XL Group currently has a consensus price target of $2.50, suggesting a potential upside of 193.08%. Given Destination XL Group’s higher probable upside, equities research analysts clearly believe Destination XL Group is more favorable than Next.

Summary

Next beats Destination XL Group on 7 of the 11 factors compared between the two stocks.

About Destination XL Group

Destination XL Group, Inc., together with its subsidiaries, operates as a specialty retailer of big and tall men’s clothing and shoes in the United States. The company’s stores offer sportswear and dresswear; fashion-neutral items, including jeans, casual pants, T-shirts, polo shirts, dress shirts, and suit separates; and casual clothing. It also provides vintage-screen T-shirts and wovens under various private labels. The company offers its products under the trade names of Destination XL, DXL, DXL Men’s Apparel, DXL outlets, Casual Male XL, and Casual Male XL outlets. The company was formerly known as Casual Male Retail Group, Inc. and changed its name to Destination XL Group, Inc. in February 2013. Destination XL Group, Inc. was incorporated in 1976 and is headquartered in Canton, Massachusetts.

About Next

NEXT plc engages in the retail of clothing, beauty, footwear, and home products in the United Kingdom, rest of Europe, the Middle East, Asia, and internationally. The company operates through NEXT Retail; NEXT Online; NEXT Finance; Total Platform; Property Management; and Franchise, Sourcing, and other segments. It offers consumer credit; NEXT branded products; and women’s, men’s, children’s, clothing, homeware, and beauty products under the LABEL brand, as well as other third-party brands. The company also provides property management services, including holding and lease of properties; operates call centers; and websites, marketing, warehousing, and distribution networks to third-party brands. It operates through retail stores, online retail platforms, and franchise stores. The company was formerly known as J Hepworth & Son and changed its name to NEXT plc in 1986. NEXT plc was founded in 1864 and is headquartered in Enderby, the United Kingdom.