Destination XL Group (NASDAQ:DXLG – Get Free Report) and Carvana (NYSE:CVNA – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, valuation and dividends.
Earnings and Valuation
This table compares Destination XL Group and Carvana”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Destination XL Group | $435.02 million | 0.06 | -$35.91 million | ($0.69) | -0.63 |
| Carvana | $20.32 billion | 3.14 | $1.41 billion | $1.81 | 32.04 |
Profitability
This table compares Destination XL Group and Carvana’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Destination XL Group | -8.77% | -9.05% | -2.75% |
| Carvana | 6.26% | 37.06% | 12.21% |
Analyst Recommendations
This is a summary of current recommendations and price targets for Destination XL Group and Carvana, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Destination XL Group | 1 | 0 | 1 | 0 | 2.00 |
| Carvana | 0 | 8 | 16 | 1 | 2.72 |
Destination XL Group presently has a consensus price target of $1.25, suggesting a potential upside of 188.55%. Carvana has a consensus price target of $83.13, suggesting a potential upside of 43.34%. Given Destination XL Group’s higher possible upside, research analysts plainly believe Destination XL Group is more favorable than Carvana.
Volatility and Risk
Destination XL Group has a beta of 1.37, suggesting that its share price is 37% more volatile than the S&P 500. Comparatively, Carvana has a beta of 3.55, suggesting that its share price is 255% more volatile than the S&P 500.
Institutional and Insider Ownership
73.5% of Destination XL Group shares are held by institutional investors. Comparatively, 56.7% of Carvana shares are held by institutional investors. 14.3% of Destination XL Group shares are held by company insiders. Comparatively, 15.2% of Carvana shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Summary
Carvana beats Destination XL Group on 12 of the 14 factors compared between the two stocks.
About Destination XL Group
Destination XL Group, Inc., together with its subsidiaries, operates as a specialty retailer of big and tall men’s clothing and shoes in the United States. The company’s stores offer sportswear and dresswear; fashion-neutral items, including jeans, casual pants, T-shirts, polo shirts, dress shirts, and suit separates; and casual clothing. It also provides vintage-screen T-shirts and wovens under various private labels. The company offers its products under the trade names of Destination XL, DXL, DXL Men’s Apparel, DXL outlets, Casual Male XL, and Casual Male XL outlets. The company was formerly known as Casual Male Retail Group, Inc. and changed its name to Destination XL Group, Inc. in February 2013. Destination XL Group, Inc. was incorporated in 1976 and is headquartered in Canton, Massachusetts.
About Carvana
Carvana Co., together with its subsidiaries, operates an e-commerce platform for buying and selling used cars in the United States. Its platform allows customers to research and identify a vehicle; inspect it using company's 360-degree vehicle imaging technology; obtain financing and warranty coverage; purchase the vehicle; and schedule delivery or pick-up from their desktop or mobile devices. The company also operates auction sites. The company was founded in 2012 and is based in Tempe, Arizona.
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