Head-To-Head Comparison: Xcel Brands (NASDAQ:XELB) and Levi Strauss & Co. (NYSE:LEVI)

Levi Strauss & Co. (NYSE:LEVI) and Xcel Brands (NASDAQ:XELB) are both retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, analyst recommendations, profitability, dividends, institutional ownership and risk.

Profitability

This table compares Levi Strauss & Co. and Xcel Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Levi Strauss & Co.	9.48%	27.92%	8.95%
Xcel Brands	-399.74%	-19.43%	-10.45%

Risk and Volatility

Levi Strauss & Co. has a beta of 1.34, meaning that its share price is 34% more volatile than the S&P 500. Comparatively, Xcel Brands has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Levi Strauss & Co. and Xcel Brands, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Levi Strauss & Co.	0	4	10	0	2.71
Xcel Brands	1	1	1	0	2.00

Levi Strauss & Co. presently has a consensus price target of $26.42, indicating a potential upside of 18.43%. Xcel Brands has a consensus price target of $3.00, indicating a potential upside of 213.48%. Given Xcel Brands’ higher probable upside, analysts plainly believe Xcel Brands is more favorable than Levi Strauss & Co..

Valuation and Earnings

This table compares Levi Strauss & Co. and Xcel Brands”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Levi Strauss & Co.	$6.36 billion	1.37	$210.60 million	$1.52	14.67
Xcel Brands	$4.98 million	0.92	-$22.40 million	($7.86)	-0.12

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

Insider and Institutional Ownership

69.1% of Levi Strauss & Co. shares are owned by institutional investors. Comparatively, 18.5% of Xcel Brands shares are owned by institutional investors. 1.3% of Levi Strauss & Co. shares are owned by company insiders. Comparatively, 29.5% of Xcel Brands shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Levi Strauss & Co. beats Xcel Brands on 12 of the 14 factors compared between the two stocks.

About Levi Strauss & Co.

Levi Strauss & Co. engages in the design, marketing, and sale of apparel products. The company offers jeans, casual and dress pants, tops, shorts, skirts, jackets, footwear, and related accessories. It operates through the following geographical segments: Americas, Europe, and Asia. The company was founded by Levi Strauss in 1853 and is headquartered in San Francisco, CA.

About Xcel Brands

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.