Critical Analysis: 361 Degrees International (OTCMKTS:TSIOF) versus Xcel Brands (NASDAQ:XELB)

361 Degrees International (OTCMKTS:TSIOF) and Xcel Brands (NASDAQ:XELB) are both small-cap retail/wholesale companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.

Institutional & Insider Ownership

18.6% of Xcel Brands shares are owned by institutional investors. 29.5% of Xcel Brands shares are owned 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.

Profitability

This table compares 361 Degrees International and Xcel Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
361 Degrees International	N/A	N/A	N/A
Xcel Brands	-361.04%	-83.71%	-34.96%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for 361 Degrees International and Xcel Brands, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
361 Degrees International	0	0	0	0	0.00
Xcel Brands	1	0	1	0	2.00

Xcel Brands has a consensus price target of $3.00, indicating a potential upside of 67.60%. Given Xcel Brands’ stronger consensus rating and higher probable upside, analysts plainly believe Xcel Brands is more favorable than 361 Degrees International.

Risk & Volatility

361 Degrees International has a beta of 0.13, meaning that its share price is 87% less volatile than the S&P 500. Comparatively, Xcel Brands has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500.

Earnings & Valuation

This table compares 361 Degrees International and Xcel Brands”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
361 Degrees International	$1.55 billion	0.72	$182.07 million	N/A	N/A
Xcel Brands	$4.94 million	2.19	-$17.46 million	($4.65)	-0.38

361 Degrees International has higher revenue and earnings than Xcel Brands.

Summary

Xcel Brands beats 361 Degrees International on 7 of the 12 factors compared between the two stocks.

About 361 Degrees International

361 Degrees International Limited, an investment holding company, manufactures and trades in sporting goods in the People's Republic of China. It operates in two segments, Adults and Kids. The company offers adult and children footwear, apparels, and accessories for sports and life under the 361º core and 361º Kids brands. It also manufactures and trades in shoes soles; trades in children sporting goods; and operates a gas station. The company operated a network of stores under the 361º core brand name. It also sells products through its 361sport.com Website; other e-commerce platforms, including Tmall, Taobao, and JD; and authorized retailers and distributors. The company was founded in 2003 and is headquartered in Xiamen, the People's Republic of China.

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.