Head-To-Head Review: Destination XL Group (NASDAQ:DXLG) vs. Fast Retailing (OTCMKTS:FRCOY)

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fast Retailing	N/A	N/A	N/A	$99.47	0.33
Destination XL Group	$496.64 million	0.31	$27.85 million	$0.38	7.00

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.

Institutional & Insider Ownership

0.0% of Fast Retailing shares are owned by institutional investors. Comparatively, 73.5% of Destination XL Group 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 is poised for long-term growth.

Analyst Ratings

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

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

Destination XL Group has a consensus price target of $3.50, suggesting a potential upside of 31.58%. Given Destination XL Group’s higher possible upside, analysts clearly believe Destination XL Group is more favorable than Fast Retailing.

Profitability

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

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

Summary

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

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.

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.