Best Buy (NYSE:BBY – Get Free Report) and Digital Brands Group (NASDAQ:DBGI – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, profitability, risk, institutional ownership, dividends, valuation and earnings.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Best Buy and Digital Brands Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Best Buy | 2 | 11 | 7 | 1 | 2.33 |
| Digital Brands Group | 1 | 0 | 0 | 0 | 1.00 |
Best Buy presently has a consensus target price of $85.90, suggesting a potential downside of 13.97%. Given Best Buy’s stronger consensus rating and higher probable upside, equities analysts clearly believe Best Buy is more favorable than Digital Brands Group.
Valuation & Earnings
This table compares Best Buy and Digital Brands Group”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Best Buy | $41.69 billion | 0.50 | $1.07 billion | $6.01 | 16.61 |
| Digital Brands Group | $7.38 million | 0.14 | -$28.25 million | ($88.79) | -0.01 |
Best Buy has higher revenue and earnings than Digital Brands Group. Digital Brands Group is trading at a lower price-to-earnings ratio than Best Buy, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
81.0% of Best Buy shares are owned by institutional investors. Comparatively, 1.6% of Digital Brands Group shares are owned by institutional investors. 0.5% of Best Buy shares are owned by insiders. Comparatively, 0.0% of Digital Brands Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Best Buy and Digital Brands Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Best Buy | 3.01% | 48.14% | 9.16% |
| Digital Brands Group | -768.25% | -561.70% | -90.27% |
Risk & Volatility
Best Buy has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500. Comparatively, Digital Brands Group has a beta of 0.04, indicating that its share price is 96% less volatile than the S&P 500.
Summary
Best Buy beats Digital Brands Group on 15 of the 15 factors compared between the two stocks.
About Best Buy
Best Buy Co., Inc. engages in the retail of technology products in the United States, Canada, and international. Its stores provide computing and mobile phone products, such as desktops, notebooks, and peripherals; mobile phones comprising related mobile network carrier commissions; networking products; tablets covering e-readers; smartwatches; and consumer electronics consisting of digital imaging, health and fitness products, portable audio comprising headphones and portable speakers, and smart home products, as well as home theaters, which includes home theater accessories, soundbars, and televisions. The company's stores also offer appliances, such as dishwashers, laundry, ovens, refrigerators, blenders, coffee makers, vacuums, and personal care; entertainment products consisting of drones, peripherals, movies, and toys, as well as hardware and software, and virtual reality and other software products; and other products, such as baby, food and beverage, luggage, outdoor living, and sporting goods. In addition, it provides delivery, installation, memberships, repair, set-up, technical support, health-related, and warranty-related services. The company offers its products through stores and websites under the Best Buy, Best Buy Ads, Best Buy Business, Best Buy Health, Buy Mobile, CST, Current Health, Geek Squad, Lively, Magnolia, Pacific Kitchen, Home, TechLiquidators, and Yardbird brands, as well as domain names comprising bestbuy.com, currenthealth.com, lively.com, techliquidators.com, yardbird.com, and bestbuy.ca. The company was formerly known as Sound of Music, Inc. Best Buy Co., Inc. was incorporated in 1966 and is headquartered in Richfield, Minnesota.
About Digital Brands Group
Digital Brands Group, Inc. engages in the provision of apparel products under various brands on direct-to-consumer and wholesale basis. It operates through DSTLD, Bailey, H&J, Stateside, and Sundry segments. The company designs, manufactures, and sells women's apparel, such as tops, sweaters, dresses, jumpsuits, bottoms, sets, jackets, rompers, suiting, sportswear, shirts, jackets, pants, shorts, polos, T-shirts, skirts, athleisure bottoms, denims, and other accessory products, as well as suiting for men. It sells its products under the Bailey 44, Harper & Jones, Stateside, Sunnyside, DSTLD, Sundry, and ACE Studios brand names. The company sells directly to the consumer through its websites, as well as through its wholesale channel in specialty stores, select department stores, and own showrooms. Digital Brands Group, Inc. was formerly known as Denim.LA, Inc. Digital Brands Group, Inc. was incorporated in 2012 and is headquartered in Austin, Texas.
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