Financial Contrast: Destination Maternity (OTCMKTS:DESTQ) & a.k.a. Brands (NYSE:AKA)

Destination Maternity (OTCMKTS:DESTQ) and a.k.a. Brands (NYSE:AKA) are both retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, valuation, analyst recommendations and dividends.

Analyst Recommendations

This is a breakdown of recent ratings for Destination Maternity and a.k.a. Brands, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Destination Maternity	0	0	0	0	0.00
a.k.a. Brands	1	1	1	1	2.50

a.k.a. Brands has a consensus target price of $18.33, indicating a potential upside of 40.54%. Given a.k.a. Brands’ stronger consensus rating and higher probable upside, analysts clearly believe a.k.a. Brands is more favorable than Destination Maternity.

Valuation and Earnings

This table compares Destination Maternity and a.k.a. Brands”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Destination Maternity	N/A	N/A	N/A	N/A	N/A
a.k.a. Brands	$574.70 million	0.24	-$25.99 million	($2.46)	-5.30

Destination Maternity has higher earnings, but lower revenue than a.k.a. Brands.

Profitability

This table compares Destination Maternity and a.k.a. Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Destination Maternity	N/A	N/A	N/A
a.k.a. Brands	-4.42%	-23.20%	-6.56%

Insider and Institutional Ownership

55.4% of a.k.a. Brands shares are owned by institutional investors. 0.4% of Destination Maternity shares are owned by company insiders. Comparatively, 17.6% of a.k.a. Brands shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

a.k.a. Brands beats Destination Maternity on 7 of the 10 factors compared between the two stocks.

About Destination Maternity

Destination Maternity Corp. engages in the design, manufacture and sale of maternity apparel and related accessories. It operates stores under three brands: Motherhood Maternity, A Pea in the Pod, and Destination Maternity. The Motherhood Maternity brand serves maternity apparel business, which is used in special occasion, offering quality merchandise at affordable value. The A Pea in the Pod brand is a contemporary, fashion-forward assortment including a curated selection of exclusive designer labels at premium pricing, offering the mom2be fashionable maternity pieces that reflect her uncompromising sense of style in both casual and career apparel. The Destination Maternity brand relates to a selection of fashion offers all three brands, plus skincare, fitness, and nutritional products to pamper the pregnant woman. The company was founded in 1982 and is headquartered in Moorestown, NJ.

About a.k.a. Brands

a.k.a. Brands Holding Corp. operates a portfolio of online fashion brands in the United States, Australia, and internationally. The company offers streetwear apparel, dresses, tops, bottoms, shoes, headwear, and accessories through its online stores under the Princess Polly, Petal & Pup, Culture Kings, and mnml brands. It also operates physical stores under the Culture Kings brand. The company was founded in 2018 and is headquartered in San Francisco, California.