Fast Retailing (OTCMKTS:FRCOY) vs. Destination XL Group (NASDAQ:DXLG) Critical Comparison

Destination XL Group (NASDAQ:DXLG) and Fast Retailing (OTCMKTS:FRCOY) are both consumer cyclical companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Profitability

This table compares Destination XL Group and Fast Retailing’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Destination XL Group	3.11%	11.10%	4.54%
Fast Retailing	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and price targets for Destination XL Group and Fast Retailing, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Destination XL Group	0	1	1	0	2.50
Fast Retailing	0	0	0	0	N/A

Destination XL Group presently has a consensus price target of $3.50, suggesting a potential upside of 26.81%. Given Destination XL Group’s higher probable upside, equities analysts plainly believe Destination XL Group is more favorable than Fast Retailing.

Insider & Institutional Ownership

73.5% of Destination XL Group shares are owned by institutional investors. Comparatively, 0.0% of Fast Retailing shares are owned by institutional investors. 12.4% of Destination XL Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Destination XL Group and Fast Retailing”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Destination XL Group	$496.64 million	0.32	$27.85 million	$0.38	7.26
Fast Retailing	N/A	N/A	N/A	$99.47	0.34

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

Summary

Destination XL Group beats Fast Retailing on 9 of the 10 factors compared between the two stocks.

About Destination XL Group

Destination XL Group, Inc., together with its subsidiaries, operates as a specialty retailer of big and tall men’s clothing and shoes in the United States. The company’s stores offer sportswear and dresswear; fashion-neutral items, including jeans, casual pants, T-shirts, polo shirts, dress shirts, and suit separates; and casual clothing. It also provides vintage-screen T-shirts and wovens under various private labels. The company offers its products under the trade names of Destination XL, DXL, DXL Men’s Apparel, DXL outlets, Casual Male XL, and Casual Male XL outlets. The company was formerly known as Casual Male Retail Group, Inc. and changed its name to Destination XL Group, Inc. in February 2013. Destination XL Group, Inc. was incorporated in 1976 and is headquartered in Canton, Massachusetts.

About Fast Retailing

Fast Retailing Co., Ltd., through its subsidiaries, operates as an apparel designer and retailer in Japan and internationally. The company operates through UNIQLO Japan, UNIQLO International, GU, and Global Brands segments. It manufactures and retails clothing for men, women, children, and babies, as well as offers shoes and other goods and items. The company operates stores and franchises under the UNIQLO, GU, PLST, Theory, COMPTOIR DES COTONNIERS, J Brand, and PRINCESSE TAM.TAM brand names. It also sells its products through online; and provides real estate leasing services. The company was formerly known as Ogori Shoji Co., Ltd. and changed its name to Fast Retailing Co., Ltd. in September 1991. Fast Retailing Co., Ltd. was founded in 1949 and is headquartered in Yamaguchi, Japan.