Digital Brands Group (NASDAQ:DBGI – Get Free Report) and Genesco (NYSE:GCO – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, analyst recommendations, valuation and profitability.
Insider and Institutional Ownership
1.6% of Digital Brands Group shares are held by institutional investors. Comparatively, 94.5% of Genesco shares are held by institutional investors. 0.0% of Digital Brands Group shares are held by company insiders. Comparatively, 23.1% of Genesco shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Digital Brands Group and Genesco”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Digital Brands Group | $5.78 million | 0.02 | -$28.25 million | ($88.79) | -0.00 |
| Genesco | $2.44 billion | 0.16 | $13.27 million | $3.84 | 9.60 |
Genesco has higher revenue and earnings than Digital Brands Group. Digital Brands Group is trading at a lower price-to-earnings ratio than Genesco, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Digital Brands Group has a beta of -0.09, indicating that its stock price is 109% less volatile than the S&P 500. Comparatively, Genesco has a beta of 1.82, indicating that its stock price is 82% more volatile than the S&P 500.
Profitability
This table compares Digital Brands Group and Genesco’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Digital Brands Group | -768.25% | -561.70% | -90.27% |
| Genesco | 1.71% | 3.14% | 1.19% |
Analyst Ratings
This is a summary of current ratings and price targets for Digital Brands Group and Genesco, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Digital Brands Group | 1 | 0 | 0 | 0 | 1.00 |
| Genesco | 0 | 4 | 0 | 1 | 2.40 |
Genesco has a consensus price target of $36.00, indicating a potential downside of 2.38%. Given Genesco’s stronger consensus rating and higher probable upside, analysts plainly believe Genesco is more favorable than Digital Brands Group.
Summary
Genesco beats Digital Brands Group on 14 of the 14 factors compared between the two stocks.
About Digital Brands Group
Digital Brands Group, Inc. is a direct-to-consumer lifestyle apparel company that develops, acquires and operates digitally focused fashion brands. Its business has centered on selling clothing and accessories through company-operated e-commerce platforms, supported by wholesale distribution and other retail channels. The company’s brand portfolio has included DSTLD, a premium denim and essentials label; Bailey 44, a women’s contemporary apparel brand; and Stateside, which offers luxury casualwear and basics.
About Genesco
Genesco Inc. is a Nashville-based footwear retailer and brand operator. Its retail businesses include Journeys and Journeys Kidz in the United States, Schuh in the United Kingdom and Ireland, Little Burgundy in Canada, and Johnston & Murphy, which sells footwear, apparel and accessories. The company also develops, sources and markets footwear through its Genesco Brands Group, serving retail partners as well as its own businesses. Its product range includes casual, athletic-inspired and dress footwear, along with related apparel and accessories.
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