Birkenstock (NYSE:BIRK – Get Free Report) and Columbia Sportswear (NASDAQ:COLM – Get Free Report) are both mid-cap consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, earnings, risk, dividends, analyst recommendations, institutional ownership and valuation.
Volatility and Risk
Birkenstock has a beta of 1.28, suggesting that its share price is 28% more volatile than the S&P 500. Comparatively, Columbia Sportswear has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500.
Valuation & Earnings
This table compares Birkenstock and Columbia Sportswear”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Birkenstock | $2.32 billion | 2.31 | $385.46 million | $2.13 | 14.15 |
| Columbia Sportswear | $3.40 billion | 0.86 | $177.22 million | $3.85 | 14.75 |
Birkenstock has higher earnings, but lower revenue than Columbia Sportswear. Birkenstock is trading at a lower price-to-earnings ratio than Columbia Sportswear, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Birkenstock and Columbia Sportswear’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Birkenstock | 14.82% | 13.36% | 7.21% |
| Columbia Sportswear | 6.05% | 11.20% | 6.67% |
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Birkenstock and Columbia Sportswear, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Birkenstock | 0 | 6 | 13 | 0 | 2.68 |
| Columbia Sportswear | 1 | 3 | 2 | 0 | 2.17 |
Birkenstock presently has a consensus target price of $52.50, suggesting a potential upside of 74.24%. Columbia Sportswear has a consensus target price of $65.40, suggesting a potential upside of 15.13%. Given Birkenstock’s stronger consensus rating and higher possible upside, research analysts plainly believe Birkenstock is more favorable than Columbia Sportswear.
Institutional and Insider Ownership
19.9% of Birkenstock shares are held by institutional investors. Comparatively, 47.8% of Columbia Sportswear shares are held by institutional investors. 51.9% of Columbia Sportswear shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Summary
Birkenstock beats Columbia Sportswear on 9 of the 14 factors compared between the two stocks.
About Birkenstock
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.
About Columbia Sportswear
Columbia Sportswear Company, together with its subsidiaries, designs, develops, markets, and distributes outdoor, active, and everyday lifestyle apparel, footwear, accessories, and equipment in the United States, Latin America, the Asia Pacific, Europe, the Middle East, Africa, and Canada. The company provides apparel, accessories, and equipment for hiking, trail running, snow, fishing, hunting, mountaineering, climbing, skiing and snowboarding, trail, and outdoor activities. It offers footwear products that include lightweight hiking boot; trail running shoes; rugged cold weather boots; sandals and shoes for use in water activities; and footwear for lifestyle wear. In addition, it owned network of branded and outlet retail stores; brand-specific e-commerce sites; and concession or franchise-based arrangements with third parties at branded outlet and shop-in-shop retail locations, as well as through independently operated specialty outdoor and sporting goods stores, sporting goods chains, department store chains, internet retailers, and international distributors. The company sells its products under the Columbia, Mountain Hard Wear, SOREL, and prAna brand names. Columbia Sportswear Company was founded in 1938 and is headquartered in Portland, Oregon.
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