Contrasting Destination XL Group (NASDAQ:DXLG) and Xcel Brands (NASDAQ:XELB)

Destination XL Group (NASDAQ:DXLGGet Free Report) and Xcel Brands (NASDAQ:XELBGet Free Report) are both small-cap retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Destination XL Group $467.02 million 0.12 $3.06 million ($0.09) -11.67
Xcel Brands $5.77 million 1.27 -$22.40 million ($9.74) -0.16

Destination XL Group has higher revenue and earnings than Xcel Brands. Destination XL Group is trading at a lower price-to-earnings ratio than Xcel Brands, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Destination XL Group has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500. Comparatively, Xcel Brands has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Destination XL Group and Xcel Brands, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Destination XL Group 1 0 1 0 2.00
Xcel Brands 1 1 1 0 2.00

Destination XL Group presently has a consensus target price of $2.50, indicating a potential upside of 138.10%. Xcel Brands has a consensus target price of $3.00, indicating a potential upside of 94.81%. Given Destination XL Group’s higher probable upside, research analysts clearly believe Destination XL Group is more favorable than Xcel Brands.

Institutional & Insider Ownership

73.5% of Destination XL Group shares are held by institutional investors. Comparatively, 18.5% of Xcel Brands shares are held by institutional investors. 14.3% of Destination XL Group shares are held by insiders. Comparatively, 40.3% of Xcel Brands shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Destination XL Group and Xcel Brands’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Destination XL Group -1.19% -2.13% -0.78%
Xcel Brands -399.74% -19.43% -10.45%

Summary

Destination XL Group beats Xcel Brands on 9 of the 12 factors compared between the two stocks.

About Destination XL Group

(Get Free Report)

Destination XL Group, Inc., together with its subsidiaries, operates as a specialty retailer of big and tall men’s clothing and shoes in the United States. The company’s stores offer sportswear and dresswear; fashion-neutral items, including jeans, casual pants, T-shirts, polo shirts, dress shirts, and suit separates; and casual clothing. It also provides vintage-screen T-shirts and wovens under various private labels. The company offers its products under the trade names of Destination XL, DXL, DXL Men’s Apparel, DXL outlets, Casual Male XL, and Casual Male XL outlets. The company was formerly known as Casual Male Retail Group, Inc. and changed its name to Destination XL Group, Inc. in February 2013. Destination XL Group, Inc. was incorporated in 1976 and is headquartered in Canton, Massachusetts.

About Xcel Brands

(Get Free Report)

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.

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