Contrasting Birkenstock (BIRK) and Its Peers

Birkenstock (NYSE:BIRK) is one of 118 public companies in the “Textiles, Apparel & Luxury Goods” industry, but how does it contrast to its competitors? We will compare Birkenstock to similar companies based on the strength of its valuation, risk, institutional ownership, dividends, earnings, profitability and analyst recommendations.

Earnings & Valuation

This table compares Birkenstock and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Birkenstock	$2.32 billion	$385.46 million	16.61
Birkenstock Competitors	$5.68 billion	$478.13 million	27.52

Birkenstock’s competitors have higher revenue and earnings than Birkenstock. Birkenstock is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent ratings for Birkenstock and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Birkenstock	1	4	13	0	2.67
Birkenstock Competitors	1593	7628	10205	343	2.47

Birkenstock currently has a consensus price target of $53.91, indicating a potential upside of 52.41%. As a group, “Textiles, Apparel & Luxury Goods” companies have a potential upside of 17.71%. Given Birkenstock’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Birkenstock is more favorable than its competitors.

Profitability

This table compares Birkenstock and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Birkenstock	14.82%	13.36%	7.21%
Birkenstock Competitors	-3.38%	13.20%	2.62%

Institutional and Insider Ownership

19.9% of Birkenstock shares are held by institutional investors. Comparatively, 54.9% of shares of all “Textiles, Apparel & Luxury Goods” companies are held by institutional investors. 15.3% of shares of all “Textiles, Apparel & Luxury Goods” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

Birkenstock has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500. Comparatively, Birkenstock’s competitors have a beta of 0.95, suggesting that their average share price is 5% less volatile than the S&P 500.

Summary

Birkenstock beats its competitors on 7 of the 13 factors compared.

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.