Destination XL Group (NASDAQ:DXLG) versus Hennes & Mauritz (OTCMKTS:HNNMY) Financial Survey

Destination XL Group (NASDAQ:DXLG) and Hennes & Mauritz (OTCMKTS:HNNMY) are both retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, earnings, institutional ownership and risk.

Risk and Volatility

Destination XL Group has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500. Comparatively, Hennes & Mauritz has a beta of 1.35, indicating that its share price is 35% more volatile than the S&P 500.

Insider and Institutional Ownership

73.5% of Destination XL Group shares are owned by institutional investors. Comparatively, 0.0% of Hennes & Mauritz shares are owned by institutional investors. 14.3% of Destination XL Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for Destination XL Group and Hennes & Mauritz, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Destination XL Group	1	0	1	0	2.00
Hennes & Mauritz	2	5	0	1	2.00

Destination XL Group presently has a consensus target price of $2.50, indicating a potential upside of 127.27%. Given Destination XL Group’s higher possible upside, analysts clearly believe Destination XL Group is more favorable than Hennes & Mauritz.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Destination XL Group	-1.19%	-2.13%	-0.78%
Hennes & Mauritz	4.80%	26.34%	6.32%

Earnings & Valuation

This table compares Destination XL Group and Hennes & Mauritz”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Destination XL Group	$447.74 million	0.13	$3.06 million	($0.09)	-12.22
Hennes & Mauritz	$22.18 billion	1.21	$1.11 billion	$0.14	27.14

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

Summary

Hennes & Mauritz beats Destination XL Group on 10 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 Hennes & Mauritz

H & M Hennes & Mauritz AB (publ) provides clothing, accessories, footwear, cosmetics, home textiles, and homeware for women, men, and children worldwide. It offers sportswear, shoes, bags, beauty products, activewear, jeans, and ready-to-wear; and interior products, including bed linens, dinnerware, textiles, furniture, and lighting. The company provides its products under the H&M, H&M HOME, H&M Move, H&M Beauty, COS, Weekday, Monki, & Other Stories, ARKET, Afound, and Singular Society brand names. In addition, it operates Sellpy, a broad digital platform for second-hand fashion and other products; and Creator Studio, a global platform for merchandise design and production, as well as provides solutions to extend the useful life of unwanted garments through reuse and recycling under Looper Textile name. The company offers its products through online and physical stores. H & M Hennes & Mauritz AB (publ) was incorporated in 1943 and is headquartered in Stockholm, Sweden.