Destination XL Group (NASDAQ: DXLG) has demonstrated stronger financial metrics compared to Christopher & Banks (OTCMKTS: CBKCQ), according to a comprehensive analysis of both companies. This examination evaluated various aspects such as analyst recommendations, institutional ownership, dividends, risk, earnings, profitability, and overall valuation.
Destination XL Group has a beta of 0.93, indicating that its stock price is approximately 7% less volatile than the S&P 500. In stark contrast, Christopher & Banks has a beta of -6.93, revealing that its stock price is 793% less volatile than the S&P 500. This significant difference in volatility suggests that investors may perceive Destination XL Group to be a less risky investment.
In terms of ownership, 73.5% of Destination XL Group’s shares are held by institutional investors, while insiders hold 14.3% of the company. In comparison, insiders own 19.8% of Christopher & Banks. High institutional ownership typically signals confidence from large investors in a company’s long-term performance.
Analyst Ratings and Profitability
Analysts have set a consensus target price of $2.50 for Destination XL Group, indicating a potential upside of 168.99%. This optimistic outlook, combined with a stronger consensus rating, positions Destination XL Group as a more favorable investment compared to Christopher & Banks.
Profitability metrics further highlight the disparity between the two retailers. Destination XL Group consistently shows higher net margins, return on equity, and return on assets. These indicators suggest that Destination XL Group is not only generating more revenue but also managing its resources more effectively than Christopher & Banks.
Company Profiles and Recent Developments
Destination XL Group, based in Canton, Massachusetts, operates as a specialty retailer focusing on big and tall men’s apparel. The company offers a wide range of clothing, including casual and dresswear, through its various brands such as DXL and Casual Male XL. Founded in 1976, Destination XL Group changed its name from Casual Male Retail Group, Inc. in February 2013.
On the other hand, Christopher & Banks, headquartered in Plymouth, Minnesota, specializes in women’s apparel and accessories, targeting customers aged 50 and older. The company has faced financial challenges, having filed for Chapter 11 bankruptcy on January 13, 2021, which was later converted to Chapter 7 on April 13, 2021. This shift indicates a complete liquidation of assets, raising concerns about the company’s future viability.
Overall, the analysis indicates that Destination XL Group outperforms Christopher & Banks across six of the ten evaluated factors. Investors looking for stability in the retail sector may want to consider Destination XL Group as a more promising option based on these metrics and the current market landscape.
