a.k.a. Brands (NYSE:AKA – Get Free Report) and Xcel Brands (NASDAQ:XELB – Get Free Report) are both small-cap retail/wholesale companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, dividends, earnings, profitability and institutional ownership.
Profitability
This table compares a.k.a. Brands and Xcel Brands’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| a.k.a. Brands | -4.48% | -21.06% | -6.33% |
| Xcel Brands | -399.74% | -19.43% | -10.45% |
Insider and Institutional Ownership
55.3% of a.k.a. Brands shares are owned by institutional investors. Comparatively, 18.6% of Xcel Brands shares are owned by institutional investors. 17.6% of a.k.a. Brands shares are owned by insiders. Comparatively, 40.3% of Xcel Brands shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Volatility and Risk
Analyst Recommendations
This is a breakdown of recent ratings and target prices for a.k.a. Brands and Xcel Brands, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| a.k.a. Brands | 1 | 1 | 1 | 0 | 2.00 |
| Xcel Brands | 1 | 1 | 1 | 0 | 2.00 |
a.k.a. Brands presently has a consensus price target of $20.00, suggesting a potential upside of 112.88%. Xcel Brands has a consensus price target of $3.00, suggesting a potential upside of 51.52%. Given a.k.a. Brands’ higher possible upside, equities analysts clearly believe a.k.a. Brands is more favorable than Xcel Brands.
Valuation & Earnings
This table compares a.k.a. Brands and Xcel Brands”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| a.k.a. Brands | $598.11 million | 0.17 | -$25.99 million | ($2.51) | -3.74 |
| Xcel Brands | $8.26 million | 1.14 | -$22.40 million | ($9.74) | -0.20 |
Xcel Brands has lower revenue, but higher earnings than a.k.a. Brands. a.k.a. Brands is trading at a lower price-to-earnings ratio than Xcel Brands, indicating that it is currently the more affordable of the two stocks.
Summary
a.k.a. Brands beats Xcel Brands on 7 of the 12 factors compared between the two stocks.
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.
About Xcel Brands
Xcel Brands, Inc., together with its subsidiaries, operates as a media and consumer products company in the United States. The company designs, produces, markets, wholesales, and sells branded apparel, footwear, accessories, jewelry, home goods, and other consumer products; and acquires consumer lifestyle brands, including the Isaac Mizrahi, the LOGO by Lori Goldstein, the Judith Ripka, the Halston brand, the C Wonder, the TowerHill by Christie Brinkley brand (the CB brand), and other brands, as well as manages the Longaberger brand. It licenses its brands to third parties; and designs, produces, markets, and distributes through an omni-channel retail sales strategy, which include distribution through interactive television, digital live-stream shopping, brick-and-mortar retail, and e-commerce channels. The company also offers live streaming, social media and other marketing, and public relations support for its brands. In addition, it markets its brands through www.isaacmizrahi.com; www.halston.com; www.judithripka.com; www.cwonder.com; www.lorigoldstein.com; and www.longaberger.com. Xcel Brands, Inc. was founded in 2011 and is headquartered in New York, New York.
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