Differential Brands Group (NASDAQ: DFBG) and G-III Apparel Group, LTD. (NASDAQ:GIII) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.
This table compares Differential Brands Group and G-III Apparel Group, LTD.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Differential Brands Group||-8.85%||-29.02%||-7.53%|
|G-III Apparel Group, LTD.||1.23%||4.65%||2.63%|
Institutional & Insider Ownership
1.6% of Differential Brands Group shares are held by institutional investors. Comparatively, 99.4% of G-III Apparel Group, LTD. shares are held by institutional investors. 62.5% of Differential Brands Group shares are held by insiders. Comparatively, 9.6% of G-III Apparel Group, LTD. shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Volatility and Risk
Differential Brands Group has a beta of -1.72, suggesting that its stock price is 272% less volatile than the S&P 500. Comparatively, G-III Apparel Group, LTD. has a beta of 0.26, suggesting that its stock price is 74% less volatile than the S&P 500.
This is a summary of recent ratings and target prices for Differential Brands Group and G-III Apparel Group, LTD., as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Differential Brands Group||0||0||2||0||3.00|
|G-III Apparel Group, LTD.||0||3||7||0||2.70|
Differential Brands Group currently has a consensus target price of $5.00, indicating a potential upside of 185.71%. G-III Apparel Group, LTD. has a consensus target price of $32.56, indicating a potential upside of 8.52%. Given Differential Brands Group’s stronger consensus rating and higher possible upside, research analysts clearly believe Differential Brands Group is more favorable than G-III Apparel Group, LTD..
Earnings & Valuation
This table compares Differential Brands Group and G-III Apparel Group, LTD.’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Differential Brands Group||$159.73 million||0.15||$4.56 million||($1.07)||-1.64|
|G-III Apparel Group, LTD.||$2.55 billion||0.57||$137.67 million||$0.69||43.48|
G-III Apparel Group, LTD. has higher revenue and earnings than Differential Brands Group. Differential Brands Group is trading at a lower price-to-earnings ratio than G-III Apparel Group, LTD., indicating that it is currently the more affordable of the two stocks.
G-III Apparel Group, LTD. beats Differential Brands Group on 10 of the 13 factors compared between the two stocks.
About Differential Brands Group
Differential Brands Group Inc., formerly Joe’s Jeans Inc., is engaged in the design, development and marketing of apparel products, which include denim jeans, related casual wear and accessories. The Company offers its products under various brands, such as Hudson, Robert Graham and SWIMS. Its segments are Wholesale and Retail. Its Wholesale segment consists of sales of Hudson products to retailers, specialty stores and international distributors. Its Retail segment consists of sales of its products to consumers through its retail Internet sites for Hudson products. The Hudson product line includes women’s, men’s and children’s denim jeans, pants and other bottoms. The Robert Graham product line includes men’s sport shirts, pants, sweaters, knits, t-shirts, sportcoats, outerwear and swimwear. Through SWIMS brand, it distributes a range of footwear, swimwear, outerwear, ready-to-wear and accessories across the world through department stores, independent specialty and luxury resorts.
About G-III Apparel Group, LTD.
G-III Apparel Group, Ltd. designs, manufactures and markets a range of apparel products. The Company operates through two segments: wholesale operations and retail operations. Its apparel products include outerwear, dresses, sportswear, swimwear, women’s suits and women’s performance wear, as well as women’s handbags, footwear, small leather goods, cold weather accessories and luggage. The Company’s owned brands include Donna Karan, DKNY, DKNY Jeans, Vilebrequin, G-III Sports by Carl Banks, Eliza J, Black Rivet and Jessica Howard. It has fashion licenses under the Calvin Klein, Tommy Hilfiger, Karl Lagerfeld, Kenneth Cole, Cole Haan and Dockers brands. Through its team sports business, it has licenses with the National Football League, National Basketball Association, Major League Baseball and National Hockey League. It also operates retail stores under the Donna Karan, Wilsons Leather, Bass, G.H. Bass & Co., Vilebrequin and Calvin Klein Performance names.
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