Xcel Brands (XELB) & Genesco (GCO) Critical Review
Xcel Brands (NASDAQ: XELB) and Genesco (NYSE:GCO) are both small-cap retail/wholesale companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, risk, earnings, profitability, valuation and analyst recommendations.
Insider & Institutional Ownership
17.3% of Xcel Brands shares are owned by institutional investors. Comparatively, 94.4% of Genesco shares are owned by institutional investors. 59.9% of Xcel Brands shares are owned by company insiders. Comparatively, 3.3% of Genesco shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This is a summary of recent ratings and recommmendations for Xcel Brands and Genesco, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Xcel Brands currently has a consensus price target of $4.50, indicating a potential upside of 26.76%. Genesco has a consensus price target of $32.71, indicating a potential upside of 26.80%. Given Genesco’s higher possible upside, analysts clearly believe Genesco is more favorable than Xcel Brands.
This table compares Xcel Brands and Genesco’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Xcel Brands and Genesco’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Xcel Brands||$32.08 million||1.76||$4.00 million||$0.14||25.36|
|Genesco||$2.85 billion||0.18||$184.95 million||$3.53||7.31|
Genesco has higher revenue and earnings than Xcel Brands. Genesco is trading at a lower price-to-earnings ratio than Xcel Brands, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Xcel Brands has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500. Comparatively, Genesco has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500.
Genesco beats Xcel Brands on 9 of the 14 factors compared between the two stocks.
About Xcel Brands
Xcel Brands, Inc. is a brand development and media company. The Company is engaged in the design, production, licensing, marketing, and direct to consumer sales of branded apparel, footwear, accessories, jewelry, home goods, and other consumer products, and the acquisition of consumer lifestyle brands. The Company’s brand portfolio consists of the Isaac Mizrahi, Judith Ripka, H Halston, C Wonder and Highline Collective brands. The Company also manages and designs the Liz Claiborne New York brand (LCNY Brand). Isaac Mizrahi has over 150 different product categories, including sportswear, footwear, handbags, watches, eyewear, fragrance, tech accessories, intimates, bridal gowns and accessories, pet products, home and other merchandise. The Company’s Judith Ripka is a luxury jewelry brand. Wonder brand offers women’s clothing, footwear, jewelry and accessories; housewares, and home decor and gifts. The Liz Claiborne New York includes women’s apparel, footwear, outerwear and accessories.
Genesco Inc. is a retailer and wholesaler of footwear, apparel and accessories. The Company operates in five segments: Journeys Group, Schuh Group, Lids Sports Group, Johnston & Murphy Group and Licensed Brands. It relies on independent third-party manufacturers for production of its footwear products sold at wholesale. It sources footwear and accessory products from foreign manufacturers located in Bangladesh, Brazil, Cambodia, Canada, China, Dominican Republic, El Salvador, France, Germany, Hong Kong, India, Indonesia, Italy, Mexico, the Netherlands, Portugal, Peru, Romania, Taiwan and Vietnam. As of January 28, 2017, it operated 2,794 retail footwear, headwear and sports apparel and accessory stores and leased departments located primarily throughout the United States and in Puerto Rico, including 147 headwear and sports apparel and accessory stores and 87 footwear stores in Canada and 128 footwear stores in the United Kingdom, the Republic of Ireland and Germany.
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