Birkenstock (BIRK) versus Its Competitors Critical Review

Birkenstock (NYSE:BIRKGet Free Report) is one of 118 public companies in the “Textiles, Apparel & Luxury Goods” industry, but how does it weigh in compared to its competitors? We will compare Birkenstock to related companies based on the strength of its earnings, risk, dividends, profitability, analyst recommendations, institutional ownership and valuation.

Volatility & Risk

Birkenstock has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500. Comparatively, Birkenstock’s competitors have a beta of 0.95, meaning that their average share price is 5% less volatile than the S&P 500.

Valuation and Earnings

This table compares Birkenstock and its competitors gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Birkenstock $2.27 billion $385.46 million 16.62
Birkenstock Competitors $5.71 billion $478.13 million 27.55

Birkenstock’s competitors have higher revenue and earnings than Birkenstock. Birkenstock is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Birkenstock and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Birkenstock 14.82% 13.36% 7.21%
Birkenstock Competitors -3.35% 13.22% 2.64%

Institutional & Insider Ownership

19.9% of Birkenstock shares are held by institutional investors. Comparatively, 54.6% of shares of all “Textiles, Apparel & Luxury Goods” companies are held by institutional investors. 16.3% of shares of all “Textiles, Apparel & Luxury Goods” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Birkenstock and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Birkenstock 1 4 13 0 2.67
Birkenstock Competitors 1595 7629 10207 343 2.47

Birkenstock presently has a consensus target price of $53.91, suggesting a potential upside of 52.28%. As a group, “Textiles, Apparel & Luxury Goods” companies have a potential upside of 18.48%. Given Birkenstock’s stronger consensus rating and higher probable upside, analysts clearly believe Birkenstock is more favorable than its competitors.

Summary

Birkenstock beats its competitors on 7 of the 13 factors compared.

About Birkenstock

(Get Free Report)

Birkenstock Holding plc manufactures and sells footwear products. It also offers sandals, shoes, closed-toe silhouettes, skincare products, and accessories. The company sells its products through e-commerce sites and a network of owned retail stores, as well as business-to-business channels. It operates in the United States, Brazil, Canada, Mexico, Europe, APMA, and internationally. Birkenstock Holding plc was founded in 1774 and is based in London, the United Kingdom. Birkenstock Holding plc is a subsidiary of BK LC Lux MidCo S.à r.l.

Receive News & Ratings for Birkenstock Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Birkenstock and related companies with MarketBeat.com's FREE daily email newsletter.