Destination XL Group (NASDAQ:DXLG – Get Free Report) and Allbirds (NASDAQ:BIRD – Get Free Report) are both small-cap retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, earnings, dividends, risk and valuation.
Analyst Recommendations
This is a breakdown of recent ratings for Destination XL Group and Allbirds, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Destination XL Group | 1 | 0 | 1 | 0 | 2.00 |
| Allbirds | 1 | 1 | 1 | 0 | 2.00 |
Destination XL Group presently has a consensus price target of $2.50, suggesting a potential upside of 192.16%. Allbirds has a consensus price target of $11.00, suggesting a potential upside of 170.94%. Given Destination XL Group’s higher probable upside, analysts plainly believe Destination XL Group is more favorable than Allbirds.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Destination XL Group | -1.73% | -3.81% | -1.36% |
| Allbirds | -51.90% | -108.35% | -56.25% |
Institutional and Insider Ownership
73.5% of Destination XL Group shares are held by institutional investors. Comparatively, 44.1% of Allbirds shares are held by institutional investors. 14.3% of Destination XL Group shares are held by company insiders. Comparatively, 30.7% of Allbirds shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Destination XL Group and Allbirds”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Destination XL Group | $467.02 million | 0.10 | $3.06 million | ($0.14) | -6.11 |
| Allbirds | $189.76 million | 0.18 | -$93.32 million | ($10.37) | -0.39 |
Destination XL Group has higher revenue and earnings than Allbirds. Destination XL Group is trading at a lower price-to-earnings ratio than Allbirds, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Destination XL Group has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500. Comparatively, Allbirds has a beta of 1.96, indicating that its stock price is 96% more volatile than the S&P 500.
Summary
Destination XL Group beats Allbirds on 8 of the 12 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 Allbirds
Allbirds, Inc. manufactures and sells footwear and apparel products for men and women in the United States and internationally. The company offers a range of lifestyle and performance shoes; and apparel, including classic tees and sweats, socks, and underwear. It sells its products through its retail stores, as well as online. The company was formerly known as Bozz, Inc. and changed its name to Allbirds, Inc. in December 2015. Allbirds, Inc. was incorporated in 2015 and is headquartered in San Francisco, California.
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