Destination XL Group (NASDAQ:DXLG – Get Free Report) and Brilliant Earth Group (NASDAQ:BRLT – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, profitability and institutional ownership.
Analyst Recommendations
This is a breakdown of current recommendations for Destination XL Group and Brilliant Earth Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Destination XL Group | 1 | 0 | 1 | 0 | 2.00 |
| Brilliant Earth Group | 1 | 7 | 0 | 0 | 1.88 |
Destination XL Group presently has a consensus price target of $1.25, indicating a potential upside of 175.57%. Brilliant Earth Group has a consensus price target of $1.74, indicating a potential upside of 15.83%. Given Destination XL Group’s stronger consensus rating and higher probable upside, analysts plainly believe Destination XL Group is more favorable than Brilliant Earth Group.
Risk & Volatility
Destination XL Group has a beta of 1.3, meaning that its stock price is 30% more volatile than the S&P 500. Comparatively, Brilliant Earth Group has a beta of 1.47, meaning that its stock price is 47% more volatile than the S&P 500.
Earnings and Valuation
This table compares Destination XL Group and Brilliant Earth Group”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Destination XL Group | $435.02 million | 0.06 | -$35.91 million | ($0.69) | -0.66 |
| Brilliant Earth Group | $437.48 million | 0.35 | -$3.63 million | ($0.29) | -5.17 |
Brilliant Earth Group has higher revenue and earnings than Destination XL Group. Brilliant Earth Group 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.
Profitability
This table compares Destination XL Group and Brilliant Earth Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Destination XL Group | -8.77% | -9.05% | -2.75% |
| Brilliant Earth Group | -0.66% | -15.48% | -5.99% |
Insider & Institutional Ownership
73.5% of Destination XL Group shares are owned by institutional investors. Comparatively, 70.4% of Brilliant Earth Group shares are owned by institutional investors. 14.3% of Destination XL Group shares are owned by insiders. Comparatively, 83.2% of Brilliant Earth Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Summary
Brilliant Earth Group beats Destination XL Group on 7 of the 13 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 Brilliant Earth Group
Brilliant Earth Group, Inc. designs, procures, and sells diamonds, gemstones, and jewelry in the United States and internationally. The company’s product assortment and merchandise include a collection of diamond engagement rings, wedding and anniversary rings, gemstone rings, and fine jewelry. It sells directly to consumers through its omnichannel sales platform, including e-commerce and showrooms. Brilliant Earth Group, Inc. was founded in 2005 and is headquartered in San Francisco, California.
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