Critical Review: Destination XL Group (NASDAQ:DXLG) and Kits Eyecare (OTCMKTS:KTYCF)

Destination XL Group (NASDAQ:DXLG) and Kits Eyecare (OTCMKTS:KTYCF) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, analyst recommendations, institutional ownership, dividends, profitability, earnings and risk.

Valuation & Earnings

This table compares Destination XL Group and Kits Eyecare”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Destination XL Group	$432.82 million	0.08	-$35.91 million	($0.73)	-0.85
Kits Eyecare	N/A	N/A	N/A	N/A	N/A

Kits Eyecare has lower revenue, but higher earnings than Destination XL Group.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Destination XL Group and Kits Eyecare, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Destination XL Group	1	0	1	0	2.00
Kits Eyecare	0	0	0	0	0.00

Destination XL Group currently has a consensus target price of $1.50, suggesting a potential upside of 141.62%. Given Destination XL Group’s stronger consensus rating and higher possible upside, equities analysts clearly believe Destination XL Group is more favorable than Kits Eyecare.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Destination XL Group	-9.22%	-10.88%	-3.45%
Kits Eyecare	N/A	N/A	N/A

Institutional and Insider Ownership

73.5% of Destination XL Group shares are held by institutional investors. 14.3% of Destination XL Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Destination XL Group beats Kits Eyecare on 6 of the 9 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 Kits Eyecare

Kits Eyecare Ltd. operates a digital eyecare platform in the United States and Canada. It manufactures progressive and contact lenses, eyeglasses, and frames under the KITS brand, as well as distributes eyewear products of various brands. The company operates through a network of optical e-commerce websites, including KITS.com, KITS.ca, OptiContacts.com, and ContactsExpress.ca. Kits Eyecare Ltd. was founded in 2002 and is headquartered in Vancouver, Canada.