G-III Apparel Group (NASDAQ:GIII – Get Free Report) and Birkenstock (NYSE:BIRK – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, earnings, analyst recommendations, valuation and risk.
Earnings & Valuation
This table compares G-III Apparel Group and Birkenstock”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| G-III Apparel Group | $2.96 billion | 0.48 | $67.35 million | $3.04 | 10.95 |
| Birkenstock | $2.32 billion | 2.87 | $385.46 million | $2.13 | 17.53 |
Birkenstock has lower revenue, but higher earnings than G-III Apparel Group. G-III Apparel Group is trading at a lower price-to-earnings ratio than Birkenstock, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent recommendations for G-III Apparel Group and Birkenstock, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| G-III Apparel Group | 0 | 4 | 2 | 0 | 2.33 |
| Birkenstock | 1 | 5 | 13 | 0 | 2.63 |
G-III Apparel Group presently has a consensus target price of $34.75, indicating a potential upside of 4.39%. Birkenstock has a consensus target price of $51.91, indicating a potential upside of 39.01%. Given Birkenstock’s stronger consensus rating and higher possible upside, analysts clearly believe Birkenstock is more favorable than G-III Apparel Group.
Risk and Volatility
G-III Apparel Group has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500. Comparatively, Birkenstock has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500.
Profitability
This table compares G-III Apparel Group and Birkenstock’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| G-III Apparel Group | 4.75% | 5.53% | 3.71% |
| Birkenstock | 14.82% | 13.36% | 7.21% |
Institutional and Insider Ownership
92.1% of G-III Apparel Group shares are held by institutional investors. Comparatively, 19.9% of Birkenstock shares are held by institutional investors. 15.0% of G-III Apparel Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Summary
Birkenstock beats G-III Apparel Group on 9 of the 14 factors compared between the two stocks.
About G-III Apparel Group
G-III Apparel Group, Ltd. designs, sources, and markets women's and men's apparel in the United States and internationally. The company operates through two segments, Wholesale Operations and Retail Operations. Its products include outerwear, dresses, sportswear, swimwear, women's suits, and women's performance wear; and women's handbags, footwear, small leather goods, cold weather accessories, and luggage. The company markets apparel and other products under the proprietary brands, including DKNY, Donna Karan, Karl Lagerfeld, Karl Lagerfeld Paris, Vilebrequin, G.H. Bass, Eliza J, Jessica Howard, Andrew Marc, Marc New York, Wilsons Leather, Sonia Rykiel, and G-III Sports by Carl Banks; and licensed brands, such as Calvin Klein, Tommy Hilfiger, Levi's, Guess?, Kenneth Cole, Cole Haan, Vince Camuto, Margaritaville, and Dockers. It has licenses with the National Football League, National Basketball Association, Major League Baseball, and National Hockey League, as well as approximately 150 U.S. colleges and universities. The company offers its products to department, specialty, and mass merchant retail stores. It also sells its products online. G-III Apparel Group, Ltd. was founded in 1956 and is based in New York, New York.
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.
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