Birkenstock (NYSE:BIRK) versus Xcel Brands (NASDAQ:XELB) Critical Comparison

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

Insider & Institutional Ownership

19.9% of Birkenstock shares are held by institutional investors. Comparatively, 18.5% of Xcel Brands shares are held by institutional investors. 29.5% of Xcel Brands shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Birkenstock	$2.27 billion	2.76	$385.46 million	$2.13	16.52
Xcel Brands	$4.94 million	1.25	-$17.46 million	($3.39)	-0.28

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.

Volatility and Risk

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Birkenstock and Xcel Brands, as reported by MarketBeat.

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

Birkenstock currently has a consensus target price of $53.91, suggesting a potential upside of 53.19%. Xcel Brands has a consensus target price of $3.00, suggesting a potential upside of 219.97%. Given Xcel Brands’ higher probable upside, analysts clearly believe Xcel Brands is more favorable than Birkenstock.

Profitability

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

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

Summary

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

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.

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.