Head to Head Comparison: K Swiss (KSWS) & Differential Brands Group (DFBG)

K Swiss (NASDAQ: KSWS) and Differential Brands Group (NASDAQ:DFBG) are both small-cap apparel & accessories – nec companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.

Earnings & Valuation

This table compares K Swiss and Differential Brands Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
K Swiss N/A N/A N/A ($0.98) -4.84
Differential Brands Group $149.27 million 0.09 -$17.81 million ($0.86) -1.13

K Swiss has higher earnings, but lower revenue than Differential Brands Group. K Swiss is trading at a lower price-to-earnings ratio than Differential Brands Group, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

K Swiss has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500. Comparatively, Differential Brands Group has a beta of -1.8, meaning that its share price is 280% less volatile than the S&P 500.

Profitability

This table compares K Swiss and Differential Brands Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
K Swiss N/A N/A N/A
Differential Brands Group -7.14% -27.60% -6.74%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for K Swiss and Differential Brands Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
K Swiss 0 0 0 0 N/A
Differential Brands Group 0 0 3 1 3.25

Differential Brands Group has a consensus price target of $5.00, suggesting a potential upside of 415.46%. Given Differential Brands Group’s higher probable upside, analysts plainly believe Differential Brands Group is more favorable than K Swiss.

Institutional and Insider Ownership

1.3% of Differential Brands Group shares are owned by institutional investors. 62.5% of Differential Brands Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Differential Brands Group beats K Swiss on 7 of the 11 factors compared between the two stocks.

About K Swiss

K-Swiss Inc. (K-Swiss) is engaged in designing, developing and marketing an array of footwear, apparel and accessories for athletic, sports and fitness activities and casual wear under the K-Swiss brand. The Company also designs, develops and markets footwear for adventurers for all terrains under the Palladium brand. The Company sells products primarily to footwear stores, pro shops, sporting goods stores and department stores. Internationally, as of December 31, 2011, K-Swiss had the right to market its products in 124 countries through eight international subsidiaries and 29 distributors. During the year ended December 31, 2011, approximately 60%, 21%, 17% and 2% of the Company’s footwear products were manufactured in China, Thailand, Vietnam and Indonesia, respectively. In May 2013, E.Land World Ltd. completed the acquisition of K Swiss Inc in a merger transaction.

About Differential Brands Group

Differential Brands Group Inc., formerly Joe’s Jeans Inc., is engaged in the design, development and marketing of apparel products, which include denim jeans, related casual wear and accessories. The Company offers its products under various brands, such as Hudson, Robert Graham and SWIMS. Its segments are Wholesale and Retail. Its Wholesale segment consists of sales of Hudson products to retailers, specialty stores and international distributors. Its Retail segment consists of sales of its products to consumers through its retail Internet sites for Hudson products. The Hudson product line includes women’s, men’s and children’s denim jeans, pants and other bottoms. The Robert Graham product line includes men’s sport shirts, pants, sweaters, knits, t-shirts, sportcoats, outerwear and swimwear. Through SWIMS brand, it distributes a range of footwear, swimwear, outerwear, ready-to-wear and accessories across the world through department stores, independent specialty and luxury resorts.

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