Birkenstock (NYSE:BIRK) & G-III Apparel Group (NASDAQ:GIII) Critical Contrast

Birkenstock (NYSE:BIRK) and G-III Apparel Group (NASDAQ:GIII) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.

Institutional and Insider Ownership

19.9% of Birkenstock shares are owned by institutional investors. Comparatively, 92.1% of G-III Apparel Group shares are owned by institutional investors. 15.0% of G-III Apparel Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for Birkenstock and G-III Apparel Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Birkenstock	1	5	13	0	2.63
G-III Apparel Group	0	4	2	0	2.33

Birkenstock presently has a consensus price target of $51.91, suggesting a potential upside of 55.43%. G-III Apparel Group has a consensus price target of $34.75, suggesting a potential upside of 14.46%. Given Birkenstock’s stronger consensus rating and higher probable upside, analysts plainly believe Birkenstock is more favorable than G-III Apparel Group.

Earnings & Valuation

This table compares Birkenstock and G-III Apparel Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Birkenstock	$2.32 billion	2.56	$385.46 million	$2.13	15.68
G-III Apparel Group	$2.96 billion	0.44	$67.35 million	$3.04	9.99

Birkenstock has higher earnings, but lower revenue than G-III Apparel Group. G-III Apparel Group is trading at a lower price-to-earnings ratio than Birkenstock, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Birkenstock has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500. Comparatively, G-III Apparel Group has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500.

Profitability

This table compares Birkenstock and G-III Apparel Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Birkenstock	14.82%	13.36%	7.21%
G-III Apparel Group	4.75%	5.53%	3.71%

Summary

Birkenstock beats G-III Apparel Group on 10 of the 14 factors compared between the two stocks.

About Birkenstock

Birkenstock Holding plc manufactures and sells footwear products. It also offers sandals, shoes, closed-toe silhouettes, skincare products, and accessories. The company sells its products through e-commerce sites and a network of owned retail stores, as well as business-to-business channels. It operates in the United States, Brazil, Canada, Mexico, Europe, APMA, and internationally. Birkenstock Holding plc was founded in 1774 and is based in London, the United Kingdom. Birkenstock Holding plc is a subsidiary of BK LC Lux MidCo S.à r.l.

About G-III Apparel Group

G-III Apparel Group, Ltd. designs, sources, and markets women's and men's apparel in the United States and internationally. The company operates through two segments, Wholesale Operations and Retail Operations. Its products include outerwear, dresses, sportswear, swimwear, women's suits, and women's performance wear; and women's handbags, footwear, small leather goods, cold weather accessories, and luggage. The company markets apparel and other products under the proprietary brands, including DKNY, Donna Karan, Karl Lagerfeld, Karl Lagerfeld Paris, Vilebrequin, G.H. Bass, Eliza J, Jessica Howard, Andrew Marc, Marc New York, Wilsons Leather, Sonia Rykiel, and G-III Sports by Carl Banks; and licensed brands, such as Calvin Klein, Tommy Hilfiger, Levi's, Guess?, Kenneth Cole, Cole Haan, Vince Camuto, Margaritaville, and Dockers. It has licenses with the National Football League, National Basketball Association, Major League Baseball, and National Hockey League, as well as approximately 150 U.S. colleges and universities. The company offers its products to department, specialty, and mass merchant retail stores. It also sells its products online. G-III Apparel Group, Ltd. was founded in 1956 and is based in New York, New York.