Li Ning (OTCMKTS:LNNGY) vs. Destination XL Group (NASDAQ:DXLG) Critical Survey

Destination XL Group (NASDAQ:DXLG) and Li Ning (OTCMKTS:LNNGY) are both retail/wholesale companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, risk, analyst recommendations, earnings and institutional ownership.

Institutional & Insider Ownership

73.5% of Destination XL Group shares are owned by institutional investors. 14.3% of Destination XL Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Destination XL Group has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500. Comparatively, Li Ning has a beta of 0.36, meaning that its share price is 64% less volatile than the S&P 500.

Profitability

This table compares Destination XL Group and Li Ning’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Destination XL Group	-8.25%	-8.96%	-3.03%
Li Ning	N/A	N/A	N/A

Valuation and Earnings

This table compares Destination XL Group and Li Ning”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Destination XL Group	$435.02 million	0.09	-$35.91 million	($0.66)	-1.10
Li Ning	$4.12 billion	1.46	$408.36 million	N/A	N/A

Li Ning has higher revenue and earnings than Destination XL Group.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Destination XL Group and Li Ning, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Destination XL Group	1	0	1	0	2.00
Li Ning	0	1	0	1	3.00

Destination XL Group currently has a consensus target price of $1.50, indicating a potential upside of 106.61%. Given Destination XL Group’s higher probable upside, analysts plainly believe Destination XL Group is more favorable than Li Ning.

Summary

Li Ning beats Destination XL Group on 8 of the 13 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 Li Ning

Li Ning Company Limited, a sports brand company, engages in the research and development, design, manufacture, marketing, distribution, and retail of sporting goods in the People’s Republic of China. The company offers sporting goods, including professional and leisure footwear, apparel, equipment, and accessories under the LI-NING brand. It also develops, manufactures, markets, distributes, and/or sells outdoor sports products under the AIGLE brand; table tennis products under the Double Happiness brand name; fashionable fitness products for dance and yoga under the Danskin brand; and badminton products under the Kason brand name. The company also provides brand licensing, administrative, and property management services. It operates conventional stores, flagship stores, China LI-NING stores, LI-NING 1990 stores, factory outlets, and multi-brand stores under the LI-NING brand. The company was founded in 1990 and is headquartered in Beijing, the People’s Republic of China.