Destination XL Group (NASDAQ:DXLG – Get Free Report) and Citi Trends (NASDAQ:CTRN – Get Free Report) are both small-cap retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, profitability, dividends and analyst recommendations.
Volatility and Risk
Destination XL Group has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500. Comparatively, Citi Trends has a beta of 2.16, suggesting that its stock price is 116% more volatile than the S&P 500.
Valuation & Earnings
This table compares Destination XL Group and Citi Trends”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Destination XL Group | $467.02 million | 0.13 | $3.06 million | ($0.09) | -12.56 |
| Citi Trends | $753.08 million | 0.50 | -$43.17 million | ($2.00) | -22.44 |
Destination XL Group has higher earnings, but lower revenue than Citi Trends. Citi Trends 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.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Destination XL Group and Citi Trends, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Destination XL Group | 1 | 0 | 1 | 0 | 2.00 |
| Citi Trends | 1 | 0 | 2 | 0 | 2.33 |
Destination XL Group currently has a consensus target price of $2.50, indicating a potential upside of 121.24%. Citi Trends has a consensus target price of $39.50, indicating a potential downside of 11.97%. Given Destination XL Group’s higher probable upside, research analysts clearly believe Destination XL Group is more favorable than Citi Trends.
Profitability
This table compares Destination XL Group and Citi Trends’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Destination XL Group | -1.19% | -2.13% | -0.78% |
| Citi Trends | -2.05% | -22.64% | -5.59% |
Institutional & Insider Ownership
73.5% of Destination XL Group shares are held by institutional investors. 14.3% of Destination XL Group shares are held by insiders. Comparatively, 10.7% of Citi Trends shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Summary
Destination XL Group beats Citi Trends on 9 of the 14 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 Citi Trends
Citi Trends, Inc. operates as a value retailer of fashion apparel, accessories, and home goods. The company offers apparel, such as fashion sportswear and footwear for men and ladies, as well as apparel for kids, including newborns, infants, toddlers, boys, and girls; sleepwear, lingerie, and scrubs for ladies; and kids uniforms and accessories. It also provides accessories and beauty products that include handbags, luggage, hats, belts, sunglasses, jewelry, and watches, as well as offers outerwear for men and women. In addition, the company offers home and lifestyle products comprising home products for the bedroom, bathroom, kitchen, and decorative accessories; and food, tech, team sports, health and products, as well as seasonal items, books, and toys. Citi Trends, Inc. provides its products primarily to African American and multicultural families in the United States. The company was formerly known as Allied Fashion, Inc. and changed its name to Citi Trends, Inc. in 2001. Citi Trends, Inc. was founded in 1946 and is headquartered in Savannah, Georgia.
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