Head to Head Review: Buckle (BKE) versus Destination XL Group (DXLG)

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Buckle (NYSE: BKE) and Destination XL Group (NASDAQ:DXLG) are both small-cap retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, institutional ownership, earnings, valuation and profitability.

Profitability

This table compares Buckle and Destination XL Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Buckle 10.13% 21.93% 16.40%
Destination XL Group -3.35% -14.81% -4.21%

Valuation and Earnings

This table compares Buckle and Destination XL Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Buckle $913.38 million 1.40 $89.70 million $1.85 14.16
Destination XL Group $467.98 million 0.18 -$18.82 million ($0.26) -6.73

Buckle has higher revenue and earnings than Destination XL Group. Destination XL Group is trading at a lower price-to-earnings ratio than Buckle, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Buckle has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500. Comparatively, Destination XL Group has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Buckle and Destination XL Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Buckle 1 0 0 0 1.00
Destination XL Group 0 0 2 0 3.00

Buckle currently has a consensus target price of $13.00, suggesting a potential downside of 50.38%. Destination XL Group has a consensus target price of $3.00, suggesting a potential upside of 71.43%. Given Destination XL Group’s stronger consensus rating and higher probable upside, analysts plainly believe Destination XL Group is more favorable than Buckle.

Dividends

Buckle pays an annual dividend of $1.00 per share and has a dividend yield of 3.8%. Destination XL Group does not pay a dividend. Buckle pays out 54.1% of its earnings in the form of a dividend.

Insider and Institutional Ownership

67.4% of Buckle shares are owned by institutional investors. Comparatively, 81.0% of Destination XL Group shares are owned by institutional investors. 41.8% of Buckle shares are owned by insiders. Comparatively, 31.5% of Destination XL Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Buckle beats Destination XL Group on 11 of the 16 factors compared between the two stocks.

Buckle Company Profile

The Buckle, Inc. operates as a retailer of casual apparel, footwear, and accessories for young men and women in the United States. It markets a selection of brand name casual apparel, including denims, other casual bottoms, tops, sportswear, outerwear, accessories, and footwear, as well as private label merchandise primarily comprising BKE, Buckle Black, BKE Boutique, Red by BKE, Daytrip denim, Gimmicks, Gilded Intent, Outpost Makers, Departwest, and Veece. The company also provides services, such as hemming, gift wrapping, layaways, guest loyalty program, the Buckle private label credit card, and personalized stylist services, as well as special order system that allows stores to obtain requested merchandise from other company stores or its online order fulfillment center. It provides its products through 456 retail stores in 43 states, as well as through its Website, buckle.com. The company was formerly known as Mills Clothing, Inc. and changed its name to The Buckle, Inc. in April 1991. The Buckle, Inc. was founded in 1948 and is headquartered in Kearney, Nebraska.

Destination XL Group Company Profile

Destination XL Group, Inc., together with its subsidiaries, operates as a specialty retailer of big and tall men's apparel. Its stores offer sportswear and dress wear; shoes; accessories, such as belts, ties, and socks; fashion-neutral items, including jeans, casual slacks, T-shirts, polo shirts, dress shirts, and suit separates; casual clothing; and lifestyle products comprising chairs, outdoor accessories, travel accessories, bed and bath products, and fitness equipment. The company offers its products under the Destination XL, DXL, DXL Men's Apparel, DXL outlets, Casual Male XL, Casual Male XL outlets, Rochester Clothing, ShoesXL, and LivingXL brands. It also provides sportswear and loungewear, jeanswear, sportcoats, dress shirts, neckwear, tailored-related separates, blazers, dress slacks, vintage-screen T-shirts and wovens, camp shirts, printed woven shirts, and relaxed island-inspired pants under various private labels. As of March 23, 2018, Destination XL Group, Inc. operated 342 store locations in the United States; London, England; and Toronto, Canada, as well as through its DestinationXL.com and bigandtall.com e-commerce sites. 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 founded in 1976 and is headquartered in Canton, Massachusetts.

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