Tailored Brands (NYSE: TLRD) and Destination XL Group (NASDAQ:DXLG) are both small-cap consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, dividends, analyst recommendations, risk and institutional ownership.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Tailored Brands $3.38 billion 0.23 $24.95 million $1.19 13.39
Destination XL Group $450.28 million 0.21 -$2.25 million ($0.28) -6.96

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

Institutional and Insider Ownership

79.6% of Destination XL Group shares are owned by institutional investors. 2.0% of Tailored Brands shares are owned by company insiders. Comparatively, 31.5% of Destination XL Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Tailored Brands 1.79% -108.13% 4.41%
Destination XL Group -3.01% -10.24% -3.05%

Dividends

Tailored Brands pays an annual dividend of $0.72 per share and has a dividend yield of 4.5%. Destination XL Group does not pay a dividend. Tailored Brands pays out 60.5% of its earnings in the form of a dividend.

Volatility and Risk

Tailored Brands has a beta of 1.87, suggesting that its share price is 87% more volatile than the S&P 500. Comparatively, Destination XL Group has a beta of 0.5, suggesting that its share price is 50% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Tailored Brands and Destination XL Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tailored Brands 0 4 4 0 2.50
Destination XL Group 0 0 2 0 3.00

Tailored Brands currently has a consensus target price of $17.33, indicating a potential upside of 8.74%. Destination XL Group has a consensus target price of $3.00, indicating a potential upside of 53.85%. Given Destination XL Group’s stronger consensus rating and higher probable upside, analysts clearly believe Destination XL Group is more favorable than Tailored Brands.

Summary

Tailored Brands beats Destination XL Group on 9 of the 15 factors compared between the two stocks.

About Tailored Brands

Tailored Brands, Inc. is a holding company of The Men’s Wearhouse, Inc. The Company is a specialty apparel retailer offering suits, suit separates, sport coats, slacks, business casual, sportswear, outerwear, dress shirts, shoes and accessories for men and tuxedo and suit rental product. It operates through two segments: Retail and Corporate Apparel. The Retail segment includes four retail merchandising brands: Men’s Wearhouse/Men’s Wearhouse and Tux, Jos. A. Bank, Moores, and K&G. Specialty apparel merchandise offered by its retail merchandising concepts include suits, suit separates, sport coats, business casual, sportswear, outerwear, dress shirts, shoes and accessories for men. Women’s career apparel, sportswear and accessories, such as shoes and children’s apparel are offered at its K&G stores. The Corporate Apparel segment includes corporate apparel and uniform operations conducted by Twin Hill in the United States and Dimensions, Alexandra and Yaffy in the United Kingdom.

About Destination XL Group

Destination XL Group, Inc. is a specialty retailer of men’s apparel with retail and direct operations in the United States and London, England. The Company operates through the Big & Tall Men’s Apparel segment. The Company operates under the trade names of Destination XL, DXL, Casual Male XL, Casual Male XL outlets, DXL outlets, Rochester Clothing, ShoesXL and LivingXL. The Company operates approximately 170 Destination XL stores, 125 Casual Male XL retail stores, 40 Casual Male XL outlet stores, nine DXL outlet stores and five Rochester Clothing stores. Its direct business includes its DestinationXL.com and bigandtall.com e-commerce sites, which support its stores, brands and product extensions. Through its multiple brands, which include both branded apparel and private-label, the Company offers a range of merchandise. The Company carries various designer brands, including Cole Haan, Allen Edmonds, Timberland, Calvin Klein, Lacoste, Donald J. Pliner and Bruno Magli.

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