Analyzing Genesco (NYSE:GCO) & Digital Brands Group (NASDAQ:DBGI)

Digital Brands Group (NASDAQ:DBGI) and Genesco (NYSE:GCO) are both small-cap consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, earnings, institutional ownership and risk.

Analyst Recommendations

This is a breakdown of recent ratings for Digital Brands Group and Genesco, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Digital Brands Group	1	0	0	0	1.00
Genesco	0	4	0	1	2.40

Genesco has a consensus target price of $36.00, indicating a potential downside of 0.02%. Given Genesco’s stronger consensus rating and higher possible upside, analysts clearly believe Genesco is more favorable than Digital Brands Group.

Insider and Institutional Ownership

1.6% of Digital Brands Group shares are owned by institutional investors. Comparatively, 94.5% of Genesco shares are owned by institutional investors. 0.0% of Digital Brands Group shares are owned by company insiders. Comparatively, 23.1% of Genesco shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Digital Brands Group has a beta of -0.09, indicating that its share price is 109% less volatile than the S&P 500. Comparatively, Genesco has a beta of 1.82, indicating that its share price is 82% more volatile than the S&P 500.

Profitability

This table compares Digital Brands Group and Genesco’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Digital Brands Group	-768.25%	-561.70%	-90.27%
Genesco	1.71%	3.14%	1.19%

Valuation and Earnings

This table compares Digital Brands Group and Genesco”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Digital Brands Group	$7.38 million	0.04	-$28.25 million	($88.79)	-0.00
Genesco	$2.44 billion	0.16	$13.27 million	$3.84	9.38

Genesco has higher revenue and earnings than Digital Brands Group. Digital Brands Group is trading at a lower price-to-earnings ratio than Genesco, indicating that it is currently the more affordable of the two stocks.

Summary

Genesco beats Digital Brands Group on 14 of the 14 factors compared between the two stocks.

About Digital Brands Group

Digital Brands Group, Inc. engages in the provision of apparel products under various brands on direct-to-consumer and wholesale basis. It operates through DSTLD, Bailey, H&J, Stateside, and Sundry segments. The company designs, manufactures, and sells women's apparel, such as tops, sweaters, dresses, jumpsuits, bottoms, sets, jackets, rompers, suiting, sportswear, shirts, jackets, pants, shorts, polos, T-shirts, skirts, athleisure bottoms, denims, and other accessory products, as well as suiting for men. It sells its products under the Bailey 44, Harper & Jones, Stateside, Sunnyside, DSTLD, Sundry, and ACE Studios brand names. The company sells directly to the consumer through its websites, as well as through its wholesale channel in specialty stores, select department stores, and own showrooms. Digital Brands Group, Inc. was formerly known as Denim.LA, Inc. Digital Brands Group, Inc. was incorporated in 2012 and is headquartered in Austin, Texas.

About Genesco

Genesco Inc. operates as a retailer and wholesaler of footwear, apparel, and accessories in the United States, Puerto Rico, Canada, the United Kingdom, and the Republic of Ireland. The company operates through four segments: Journeys Group, Schuh Group, Johnston & Murphy Group, and Genesco Brands. The Journeys Group segment offers footwear and accessories through the Journeys, Journeys Kidz, and Little Burgundy retail chains, as well as through e-commerce and catalogs for young men, women, and children. Its Schuh Group segment operates Schuh retail footwear stores that offer casual and athletic footwear, as well as sells footwear through e-commerce. The Johnston & Murphy Group segment involved in the retail and e-commerce operations; and wholesale distribution of men’s dress and casual footwear, apparel, and accessories, as well as women’s footwear and accessories. Its Genesco Brands Group segment markets footwear under the Levi’s, Dockers, and G.H. Bass brands for men, women, and children, as well as designs and manufactures the STARTER brands footwear. The company operates through Journeys, Journeys Kidz, Schuh, Little Burgundy, and Johnston & Murphy brand names; and e-commerce websites, including journeys.com, journeyskidz.com, journeys.ca, schuh.co.uk, schuh.ie, schuh.eu, johnstonmurphy.com, littleburgundyshoes.com, johnstonmurphy.ca, nashvilleshoewarehouse.com, and dockersshoes.com. Genesco Inc. was incorporated in 1934 and is headquartered in Nashville, Tennessee.