Comparing Express (EXPR) and Genesco (GCO)

Genesco (NYSE: GCO) and Express (NYSE:EXPR) are both small-cap retail/wholesale companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, valuation, institutional ownership and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and price targets for Genesco and Express, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Genesco 0 4 5 0 2.56
Express 0 9 0 0 2.00

Genesco currently has a consensus price target of $37.33, indicating a potential upside of 7.43%. Express has a consensus price target of $9.05, indicating a potential upside of 26.75%. Given Express’ higher possible upside, analysts plainly believe Express is more favorable than Genesco.

Institutional & Insider Ownership

98.0% of Genesco shares are owned by institutional investors. Comparatively, 99.1% of Express shares are owned by institutional investors. 3.3% of Genesco shares are owned by insiders. Comparatively, 2.6% of Express shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Genesco and Express’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Genesco $2.87 billion 0.24 $97.43 million ($6.33) -5.49
Express $2.19 billion 0.26 $57.41 million $0.16 44.63

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

Risk and Volatility

Genesco has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500. Comparatively, Express has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500.

Profitability

This table compares Genesco and Express’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Genesco -4.24% 6.93% 4.03%
Express 0.60% 3.85% 2.03%

Summary

Genesco beats Express on 8 of the 14 factors compared between the two stocks.

Genesco Company Profile

Genesco Inc. is a retailer and wholesaler of footwear, apparel and accessories. The Company operates in five segments: Journeys Group, Schuh Group, Lids Sports Group, Johnston & Murphy Group and Licensed Brands. It relies on independent third-party manufacturers for production of its footwear products sold at wholesale. It sources footwear and accessory products from foreign manufacturers located in Bangladesh, Brazil, Cambodia, Canada, China, Dominican Republic, El Salvador, France, Germany, Hong Kong, India, Indonesia, Italy, Mexico, the Netherlands, Portugal, Peru, Romania, Taiwan and Vietnam. As of January 28, 2017, it operated 2,794 retail footwear, headwear and sports apparel and accessory stores and leased departments located primarily throughout the United States and in Puerto Rico, including 147 headwear and sports apparel and accessory stores and 87 footwear stores in Canada and 128 footwear stores in the United Kingdom, the Republic of Ireland and Germany.

Express Company Profile

Express, Inc. is a specialty apparel and accessories retailer offering both women’s and men’s merchandise. The Company targets women and men between 20 and 30 years old. It offers an assortment of fashionable apparel and accessories to address fashion needs across multiple aspects of lifestyles, including work, casual, jeanswear and going-out occasions. It is engaged in the operation of its brick-and-mortar retail and outlet stores, e-commerce operations and franchise operations. It sells its products through its e-commerce Website, www.express.com and its mobile application, and has franchise agreements with franchisees that operate Express locations in Latin America. It operated 656 stores across the United States, in Canada and in Puerto Rico, including 104 factory outlet stores, as of January 28, 2017. Its products are created by its in-house design team. Its portfolio of apparel products includes brands, such as Portofino shirt, Editor pant and 1MX shirt.

Receive News & Ratings for Genesco Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Genesco and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply