Destination XL Group (NASDAQ:DXLG) and Victoria’s Secret & Co. (NYSE:VSCO) Head to Head Survey

Victoria’s Secret & Co. (NYSE:VSCO) and Destination XL Group (NASDAQ:DXLG) are both retail/wholesale companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, profitability, dividends, analyst recommendations, risk, valuation and institutional ownership.

Volatility and Risk

Victoria’s Secret & Co. has a beta of 2.19, suggesting that its stock price is 119% more volatile than the S&P 500. Comparatively, Destination XL Group has a beta of 1.47, suggesting that its stock price is 47% more volatile than the S&P 500.

Earnings and Valuation

This table compares Victoria’s Secret & Co. and Destination XL Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Victoria’s Secret & Co.	$6.55 billion	0.55	$160.86 million	$1.86	24.08
Destination XL Group	$435.02 million	0.06	$3.06 million	($0.14)	-3.66

Victoria’s Secret & Co. has higher revenue and earnings than Destination XL Group. Destination XL Group is trading at a lower price-to-earnings ratio than Victoria’s Secret & Co., indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Victoria’s Secret & Co. and Destination XL Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Victoria’s Secret & Co.	2.45%	36.21%	5.19%
Destination XL Group	-8.25%	-8.46%	-2.98%

Insider & Institutional Ownership

90.3% of Victoria’s Secret & Co. shares are held by institutional investors. Comparatively, 73.5% of Destination XL Group shares are held by institutional investors. 0.5% of Victoria’s Secret & Co. shares are held by insiders. Comparatively, 14.3% of Destination XL Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Victoria’s Secret & Co. and Destination XL Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Victoria’s Secret & Co.	1	5	6	1	2.54
Destination XL Group	1	0	1	0	2.00

Victoria’s Secret & Co. currently has a consensus target price of $60.20, indicating a potential upside of 34.40%. Destination XL Group has a consensus target price of $1.50, indicating a potential upside of 192.91%. Given Destination XL Group’s higher possible upside, analysts clearly believe Destination XL Group is more favorable than Victoria’s Secret & Co..

Summary

Victoria’s Secret & Co. beats Destination XL Group on 13 of the 15 factors compared between the two stocks.

About Victoria’s Secret & Co.

Victoria’s Secret & Co. operates as a lingerie, clothing and beauty retailer. It offers bras, panties, lingerie, pajamas, sleep, sport and swim apparel, and beauty products. The company was founded in 1963 and is headquartered in Reynoldsburg, OH.

About Destination XL Group

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.