ON (NYSE:ONON – Get Free Report) and Destination XL Group (NASDAQ:DXLG – Get Free Report) are both retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, valuation, profitability and risk.
Institutional and Insider Ownership
36.4% of ON shares are owned by institutional investors. Comparatively, 73.5% of Destination XL Group 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, large money managers and endowments believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent ratings and price targets for ON and Destination XL Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ON | 2 | 1 | 19 | 4 | 2.96 |
| Destination XL Group | 1 | 0 | 1 | 0 | 2.00 |
Risk and Volatility
ON has a beta of 2.16, suggesting that its share price is 116% more volatile than the S&P 500. Comparatively, Destination XL Group has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500.
Valuation and Earnings
This table compares ON 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 | |
| ON | $2.63 billion | 11.52 | $275.23 million | $0.77 | 62.72 |
| Destination XL Group | $467.02 million | 0.13 | $3.06 million | ($0.14) | -7.86 |
ON has higher revenue and earnings than Destination XL Group. Destination XL Group is trading at a lower price-to-earnings ratio than ON, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares ON and Destination XL Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ON | 7.45% | 14.81% | 8.48% |
| Destination XL Group | -1.73% | -3.81% | -1.36% |
Summary
ON beats Destination XL Group on 12 of the 15 factors compared between the two stocks.
About ON
On Holding AG engages in the development and distribution of sports products such as footwear, apparel, and accessories for high-performance running, outdoor, all-day activities, and tennis. It sells its products worldwide through independent retailers and global distributors, its own online presence, and its own stores. The company was founded by David Allemann, Olivier Bernhard, and Caspar Coppetti in January 2010 and is headquartered in Zurich, Switzerland.
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.
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