CarParts.com (NASDAQ:PRTS – Get Free Report) and Destination XL Group (NASDAQ:DXLG – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, institutional ownership, profitability and earnings.
Insider and Institutional Ownership
75.3% of CarParts.com shares are owned by institutional investors. Comparatively, 73.5% of Destination XL Group shares are owned by institutional investors. 6.6% of CarParts.com shares are owned by company insiders. Comparatively, 14.3% of Destination XL Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares CarParts.com and Destination XL Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CarParts.com | -4.03% | -37.30% | -11.38% |
| Destination XL Group | -8.77% | -9.05% | -2.75% |
Risk & Volatility
Valuation and Earnings
This table compares CarParts.com and Destination XL Group”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CarParts.com | $547.53 million | 0.12 | -$50.44 million | ($2.96) | -2.84 |
| Destination XL Group | $435.02 million | 0.05 | -$35.91 million | ($0.69) | -0.61 |
Destination XL Group has lower revenue, but higher earnings than CarParts.com. CarParts.com is trading at a lower price-to-earnings ratio than Destination XL Group, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent recommendations and price targets for CarParts.com and Destination XL Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CarParts.com | 1 | 1 | 0 | 0 | 1.50 |
| Destination XL Group | 1 | 0 | 1 | 0 | 2.00 |
CarParts.com presently has a consensus price target of $7.00, indicating a potential downside of 16.86%. Destination XL Group has a consensus price target of $1.25, indicating a potential upside of 197.27%. Given Destination XL Group’s stronger consensus rating and higher possible upside, analysts plainly believe Destination XL Group is more favorable than CarParts.com.
Summary
Destination XL Group beats CarParts.com on 9 of the 13 factors compared between the two stocks.
About CarParts.com
CarParts.com, Inc. is an e-commerce retailer specializing in replacement and aftermarket automotive parts and accessories. Through its online platform, the company serves owners, do-it-yourself customers, professional installers and collision-repair businesses seeking parts for cars, trucks and sport utility vehicles. Its product offerings include collision and body components such as bumpers, fenders, hoods, mirrors and lighting, as well as mechanical parts for braking, suspension, steering, engine, transmission, exhaust and cooling systems.
About Destination XL Group
Destination XL Group, Inc. is a specialty retailer focused on clothing and accessories for big and tall men. The company operates under the Destination XL and DXL brands, offering casualwear, business attire, activewear, footwear, underwear, and accessories in extended sizes and proportions. Destination XL serves customers through a combination of retail stores, e-commerce operations, and other direct-to-consumer channels. Its merchandise includes products from national brands as well as private-label offerings designed specifically for the big and tall market.
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