Analyzing Xcel Brands (NASDAQ:XELB) and Stein Mart (OTCMKTS:SMRTQ)

Xcel Brands (NASDAQ:XELB) and Stein Mart (OTCMKTS:SMRTQ) are both retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, risk, earnings, analyst recommendations, dividends and valuation.

Valuation & Earnings

This table compares Xcel Brands and Stein Mart”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xcel Brands	$4.94 million	2.57	-$17.46 million	($4.65)	-0.45
Stein Mart	N/A	N/A	N/A	N/A	N/A

Stein Mart has lower revenue, but higher earnings than Xcel Brands.

Profitability

This table compares Xcel Brands and Stein Mart’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Xcel Brands	-361.04%	-83.71%	-34.96%
Stein Mart	N/A	N/A	N/A

Institutional and Insider Ownership

18.6% of Xcel Brands shares are held by institutional investors. 29.5% of Xcel Brands shares are held by insiders. Comparatively, 39.4% of Stein Mart shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Xcel Brands and Stein Mart, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xcel Brands	1	0	1	0	2.00
Stein Mart	0	0	0	0	0.00

Xcel Brands currently has a consensus target price of $3.00, suggesting a potential upside of 42.86%. Given Xcel Brands’ stronger consensus rating and higher possible upside, research analysts plainly believe Xcel Brands is more favorable than Stein Mart.

Summary

Xcel Brands beats Stein Mart on 5 of the 9 factors compared between the two stocks.

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.

About Stein Mart

Stein Mart, Inc., a specialty omnichannel off-price retailer, offers designer and name-brand fashion apparels, home décor merchandise, accessories, and shoes at everyday discount prices in the United States. The company's stores also provides endless aisle, a mobile technology to locate products; a SMart Rewards loyalty program; co-branded and private label credit card programs; and electronic gift cards. As of June 3, 2020, it operated 281 stores in 30 states. The company also sells its products through an online retail selling site. Stein Mart, Inc. was founded in 1908 and is headquartered in Jacksonville, Florida. On August 12, 2020, Stein Mart, Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Middle District of Florida.