Analyzing Canada Goose (NYSE:GOOS) and Birkenstock (NYSE:BIRK)

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

Profitability

This table compares Canada Goose and Birkenstock’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Canada Goose	3.65%	14.28%	4.56%
Birkenstock	14.82%	13.36%	7.21%

Insider and Institutional Ownership

83.6% of Canada Goose shares are owned by institutional investors. Comparatively, 19.9% of Birkenstock shares are owned by institutional investors. 0.5% of Canada Goose shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for Canada Goose and Birkenstock, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Canada Goose	5	3	1	0	1.56
Birkenstock	0	6	13	0	2.68

Canada Goose presently has a consensus price target of $11.78, suggesting a potential upside of 52.12%. Birkenstock has a consensus price target of $52.79, suggesting a potential upside of 62.12%. Given Birkenstock’s stronger consensus rating and higher possible upside, analysts plainly believe Birkenstock is more favorable than Canada Goose.

Earnings & Valuation

This table compares Canada Goose and Birkenstock”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Canada Goose	$1.11 billion	0.68	$16.29 million	$0.39	19.86
Birkenstock	$2.27 billion	2.56	$385.46 million	$2.13	15.29

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

Risk & Volatility

Canada Goose has a beta of 1.62, indicating that its share price is 62% more volatile than the S&P 500. Comparatively, Birkenstock has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500.

Summary

Birkenstock beats Canada Goose on 9 of the 14 factors compared between the two stocks.

About Canada Goose

Canada Goose Holdings Inc., together with its subsidiaries, designs, manufactures, and sells performance luxury apparel for men, women, youth, children, and babies in Canada, the United States, Asia Pacific, Europe, the Middle East, and Africa. The company operates through three segments: Direct-to-Consumer, Wholesale, and Other. It offers parkas, lightweight down jackets, rainwear, windwear, apparel, fleece, footwear, and accessories for fall, winter, and spring seasons. The company operates through national e-commerce markets and directly operated retail stores. Canada Goose Holdings Inc. was founded in 1957 and is headquartered in Toronto, Canada.

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.