Critical Comparison: Birkenstock (NYSE:BIRK) versus G-III Apparel Group (NASDAQ:GIII)

G-III Apparel Group (NASDAQ:GIII) and Birkenstock (NYSE:BIRK) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, valuation, dividends, risk, profitability and institutional ownership.

Risk & Volatility

G-III Apparel Group has a beta of 1.28, suggesting that its stock price is 28% more volatile than the S&P 500. Comparatively, Birkenstock has a beta of 1.3, suggesting that its stock price is 30% more volatile than the S&P 500.

Institutional and Insider Ownership

92.1% of G-III Apparel Group shares are owned by institutional investors. Comparatively, 19.9% of Birkenstock shares are owned by institutional investors. 15.0% of G-III Apparel Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for G-III Apparel Group and Birkenstock, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
G-III Apparel Group	0	4	2	0	2.33
Birkenstock	1	5	13	0	2.63

G-III Apparel Group presently has a consensus price target of $34.75, indicating a potential upside of 10.56%. Birkenstock has a consensus price target of $51.91, indicating a potential upside of 46.08%. Given Birkenstock’s stronger consensus rating and higher possible upside, analysts plainly believe Birkenstock is more favorable than G-III Apparel Group.

Profitability

This table compares G-III Apparel Group and Birkenstock’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
G-III Apparel Group	4.75%	5.53%	3.71%
Birkenstock	14.82%	13.36%	7.21%

Earnings & Valuation

This table compares G-III Apparel Group and Birkenstock”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
G-III Apparel Group	$2.96 billion	0.46	$67.35 million	$3.04	10.34
Birkenstock	$2.27 billion	2.79	$385.46 million	$2.13	16.68

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

Summary

Birkenstock beats G-III Apparel Group on 10 of the 14 factors compared between the two stocks.

About G-III Apparel Group

G-III Apparel Group, Ltd. designs, sources, and markets women's and men's apparel in the United States and internationally. The company operates through two segments, Wholesale Operations and Retail Operations. Its products include outerwear, dresses, sportswear, swimwear, women's suits, and women's performance wear; and women's handbags, footwear, small leather goods, cold weather accessories, and luggage. The company markets apparel and other products under the proprietary brands, including DKNY, Donna Karan, Karl Lagerfeld, Karl Lagerfeld Paris, Vilebrequin, G.H. Bass, Eliza J, Jessica Howard, Andrew Marc, Marc New York, Wilsons Leather, Sonia Rykiel, and G-III Sports by Carl Banks; and licensed brands, such as Calvin Klein, Tommy Hilfiger, Levi's, Guess?, Kenneth Cole, Cole Haan, Vince Camuto, Margaritaville, and Dockers. It has licenses with the National Football League, National Basketball Association, Major League Baseball, and National Hockey League, as well as approximately 150 U.S. colleges and universities. The company offers its products to department, specialty, and mass merchant retail stores. It also sells its products online. G-III Apparel Group, Ltd. was founded in 1956 and is based in New York, New York.

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.