Head-To-Head Survey: Next (OTCMKTS:NXGPY) & Xcel Brands (NASDAQ:XELB)

Xcel Brands (NASDAQ:XELB) and Next (OTCMKTS:NXGPY) are both retail/wholesale companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, risk, earnings, dividends, valuation, analyst recommendations and institutional ownership.

Volatility & Risk

Xcel Brands has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500. Comparatively, Next has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Xcel Brands and Next, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xcel Brands	1	1	1	0	2.00
Next	0	1	0	0	2.00

Xcel Brands presently has a consensus target price of $3.00, suggesting a potential upside of 169.06%. Given Xcel Brands’ higher possible upside, research analysts clearly believe Xcel Brands is more favorable than Next.

Earnings & Valuation

This table compares Xcel Brands and Next”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xcel Brands	$4.98 million	1.07	-$22.40 million	($7.86)	-0.14
Next	$7.82 billion	2.86	$938.45 million	N/A	N/A

Next has higher revenue and earnings than Xcel Brands.

Insider & Institutional Ownership

18.5% of Xcel Brands shares are owned by institutional investors. 29.5% of Xcel Brands shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Xcel Brands and Next’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Xcel Brands	-437.09%	-51.46%	-24.73%
Next	N/A	N/A	N/A

Summary

Next beats Xcel Brands on 7 of the 11 factors compared between the two stocks.

About Xcel Brands

Xcel Brands, Inc., together with its subsidiaries, operates as a media and consumer products company in the United States. The company designs, produces, markets, wholesales, and sells branded apparel, footwear, accessories, jewelry, home goods, and other consumer products; and acquires consumer lifestyle brands, including the Isaac Mizrahi, the LOGO by Lori Goldstein, the Judith Ripka, the Halston brand, the C Wonder, the TowerHill by Christie Brinkley brand (the CB brand), and other brands, as well as manages the Longaberger brand. It licenses its brands to third parties; and designs, produces, markets, and distributes through an omni-channel retail sales strategy, which include distribution through interactive television, digital live-stream shopping, brick-and-mortar retail, and e-commerce channels. The company also offers live streaming, social media and other marketing, and public relations support for its brands. In addition, it markets its brands through www.isaacmizrahi.com; www.halston.com; www.judithripka.com; www.cwonder.com; www.lorigoldstein.com; and www.longaberger.com. Xcel Brands, Inc. was founded in 2011 and is headquartered in New York, New York.

About Next

NEXT plc engages in the retail of clothing, beauty, footwear, and home products in the United Kingdom, rest of Europe, the Middle East, Asia, and internationally. The company operates through NEXT Retail; NEXT Online; NEXT Finance; Total Platform; Property Management; and Franchise, Sourcing, and other segments. It offers consumer credit; NEXT branded products; and women’s, men’s, children’s, clothing, homeware, and beauty products under the LABEL brand, as well as other third-party brands. The company also provides property management services, including holding and lease of properties; operates call centers; and websites, marketing, warehousing, and distribution networks to third-party brands. It operates through retail stores, online retail platforms, and franchise stores. The company was formerly known as J Hepworth & Son and changed its name to NEXT plc in 1986. NEXT plc was founded in 1864 and is headquartered in Enderby, the United Kingdom.