Financial Analysis: Burberry Group (OTCMKTS:BURBY) versus Canada Goose (NYSE:GOOS)

Canada Goose (NYSE:GOOSGet Free Report) and Burberry Group (OTCMKTS:BURBYGet Free Report) are both retail/wholesale companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, risk, valuation, dividends, profitability, analyst recommendations and institutional ownership.

Volatility & Risk

Canada Goose has a beta of 1.72, meaning that its stock price is 72% more volatile than the S&P 500. Comparatively, Burberry Group has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Canada Goose and Burberry Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Canada Goose 4 3 2 0 1.78
Burberry Group 0 0 0 3 4.00

Canada Goose presently has a consensus price target of $15.17, indicating a potential upside of 39.00%. Given Canada Goose’s higher possible upside, research analysts plainly believe Canada Goose is more favorable than Burberry Group.

Earnings & Valuation

This table compares Canada Goose and Burberry Group”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Canada Goose $969.08 million 1.09 $68.13 million $0.13 83.93
Burberry Group $3.14 billion 1.60 -$95.68 million N/A N/A

Canada Goose has higher earnings, but lower revenue than Burberry Group.

Institutional & Insider Ownership

83.6% of Canada Goose shares are owned by institutional investors. Comparatively, 10.3% of Burberry Group shares are owned by institutional investors. 0.5% of Canada Goose shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Canada Goose and Burberry Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Canada Goose 1.35% 13.89% 4.28%
Burberry Group N/A N/A N/A

Summary

Canada Goose beats Burberry Group on 9 of the 13 factors compared between the two stocks.

About Canada Goose

(Get Free Report)

Canada Goose Holdings Inc., together with its subsidiaries, designs, manufactures, and sells performance luxury apparel for men, women, youth, children, and babies in Canada, the United States, Asia Pacific, Europe, the Middle East, and Africa. The company operates through three segments: Direct-to-Consumer, Wholesale, and Other. It offers parkas, lightweight down jackets, rainwear, windwear, apparel, fleece, footwear, and accessories for fall, winter, and spring seasons. The company operates through national e-commerce markets and directly operated retail stores. Canada Goose Holdings Inc. was founded in 1957 and is headquartered in Toronto, Canada.

About Burberry Group

(Get Free Report)

Burberry Group plc, together with its subsidiaries, manufactures, retails, and wholesales luxury goods under the Burberry brand. The company operates in two segments, Retail/Wholesale and Licensing. It provides womenswear, menswear, childrenswear, beauty, eyewear, shoes, and accessories, as well as leather goods, such as bags. The company also licenses third parties to manufacture and distribute products using the Burberry trademarks. It sells its products through Burberry mainline stores, concessions, outlets, digital commerce, Burberry franchisees, department stores, and multi-brand specialty accounts, as well as through Burberry.com website. It operates in the Asia Pacific, Europe, the Middle East, India, Africa, and the Americas. The company was founded in 1856 and is headquartered in London, the United Kingdom.

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