Columbia Sportswear (NASDAQ:COLM) vs. Birkenstock (NYSE:BIRK) Financial Analysis

Birkenstock (NYSE:BIRK) and Columbia Sportswear (NASDAQ:COLM) are both mid-cap consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, profitability and risk.

Earnings and Valuation

This table compares Birkenstock and Columbia Sportswear”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Birkenstock	$2.32 billion	2.39	$385.46 million	$2.13	14.62
Columbia Sportswear	$3.40 billion	0.86	$177.22 million	$3.85	14.78

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

Institutional & Insider Ownership

19.9% of Birkenstock shares are owned by institutional investors. Comparatively, 47.8% of Columbia Sportswear shares are owned by institutional investors. 51.9% of Columbia Sportswear shares are owned by 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 Ratings

This is a summary of recent recommendations and price targets for Birkenstock and Columbia Sportswear, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Birkenstock	0	6	13	0	2.68
Columbia Sportswear	1	3	2	0	2.17

Birkenstock presently has a consensus price target of $52.50, indicating a potential upside of 68.60%. Columbia Sportswear has a consensus price target of $65.40, indicating a potential upside of 14.90%. Given Birkenstock’s stronger consensus rating and higher possible upside, analysts plainly believe Birkenstock is more favorable than Columbia Sportswear.

Profitability

This table compares Birkenstock and Columbia Sportswear’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%
Columbia Sportswear	6.05%	11.20%	6.67%

Volatility & Risk

Birkenstock has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500. Comparatively, Columbia Sportswear has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500.

Summary

Birkenstock beats Columbia Sportswear on 9 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 Columbia Sportswear

Columbia Sportswear Company, together with its subsidiaries, designs, develops, markets, and distributes outdoor, active, and everyday lifestyle apparel, footwear, accessories, and equipment in the United States, Latin America, the Asia Pacific, Europe, the Middle East, Africa, and Canada. The company provides apparel, accessories, and equipment for hiking, trail running, snow, fishing, hunting, mountaineering, climbing, skiing and snowboarding, trail, and outdoor activities. It offers footwear products that include lightweight hiking boot; trail running shoes; rugged cold weather boots; sandals and shoes for use in water activities; and footwear for lifestyle wear. In addition, it owned network of branded and outlet retail stores; brand-specific e-commerce sites; and concession or franchise-based arrangements with third parties at branded outlet and shop-in-shop retail locations, as well as through independently operated specialty outdoor and sporting goods stores, sporting goods chains, department store chains, internet retailers, and international distributors. The company sells its products under the Columbia, Mountain Hard Wear, SOREL, and prAna brand names. Columbia Sportswear Company was founded in 1938 and is headquartered in Portland, Oregon.