Critical Review: Digital Brands Group (NASDAQ:DBGI) versus LuxExperience B.V. (NYSE:LUXE)

LuxExperience B.V. (NYSE:LUXE) and Digital Brands Group (NASDAQ:DBGI) are both small-cap consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.

Analyst Recommendations

This is a summary of current ratings and price targets for LuxExperience B.V. and Digital Brands Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LuxExperience B.V.	0	4	2	1	2.57
Digital Brands Group	1	0	0	0	1.00

LuxExperience B.V. presently has a consensus target price of $11.18, suggesting a potential upside of 11.30%. Given LuxExperience B.V.’s stronger consensus rating and higher probable upside, analysts clearly believe LuxExperience B.V. is more favorable than Digital Brands Group.

Earnings and Valuation

This table compares LuxExperience B.V. and Digital Brands Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LuxExperience B.V.	$2.50 billion	0.34	-$195.62 million	($1.43)	-7.02
Digital Brands Group	$7.38 million	0.08	-$28.25 million	($88.79)	-0.01

Digital Brands Group has lower revenue, but higher earnings than LuxExperience B.V.. LuxExperience B.V. is trading at a lower price-to-earnings ratio than Digital Brands Group, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

LuxExperience B.V. has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500. Comparatively, Digital Brands Group has a beta of -0.09, indicating that its stock price is 109% less volatile than the S&P 500.

Profitability

This table compares LuxExperience B.V. and Digital Brands Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LuxExperience B.V.	-6.54%	-9.88%	-5.82%
Digital Brands Group	-768.25%	-561.70%	-90.27%

Institutional and Insider Ownership

10.1% of LuxExperience B.V. shares are held by institutional investors. Comparatively, 1.6% of Digital Brands Group shares are held by institutional investors. 1.9% of LuxExperience B.V. shares are held by company insiders. Comparatively, 0.0% of Digital Brands Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

LuxExperience B.V. beats Digital Brands Group on 13 of the 15 factors compared between the two stocks.

About LuxExperience B.V.

MYT Netherlands Parent B.V., through its subsidiary, Mytheresa Group GmbH, operates a luxury e-commerce platform for fashion consumers in Germany, the United States, the rest of Europe, and internationally. The company sells clothes, bags, shoes, accessories, and fine jewelry through online and retail stores. It serves high-income luxury consumers. The company was founded in 1987 and is based in Munich, Germany.

About Digital Brands Group

Digital Brands Group, Inc. engages in the provision of apparel products under various brands on direct-to-consumer and wholesale basis. It operates through DSTLD, Bailey, H&J, Stateside, and Sundry segments. The company designs, manufactures, and sells women's apparel, such as tops, sweaters, dresses, jumpsuits, bottoms, sets, jackets, rompers, suiting, sportswear, shirts, jackets, pants, shorts, polos, T-shirts, skirts, athleisure bottoms, denims, and other accessory products, as well as suiting for men. It sells its products under the Bailey 44, Harper & Jones, Stateside, Sunnyside, DSTLD, Sundry, and ACE Studios brand names. The company sells directly to the consumer through its websites, as well as through its wholesale channel in specialty stores, select department stores, and own showrooms. Digital Brands Group, Inc. was formerly known as Denim.LA, Inc. Digital Brands Group, Inc. was incorporated in 2012 and is headquartered in Austin, Texas.