Analyzing Birkenstock (BIRK) & The Competition

Birkenstock (NYSE:BIRK) is one of 116 publicly-traded companies in the “Textiles, Apparel & Luxury Goods” industry, but how does it compare to its competitors? We will compare Birkenstock to similar businesses based on the strength of its institutional ownership, valuation, profitability, earnings, analyst recommendations, dividends and risk.

Analyst Recommendations

This is a summary of current ratings and target prices for Birkenstock and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Birkenstock	1	4	13	0	2.67
Birkenstock Competitors	1537	7494	10057	336	2.47

Birkenstock presently has a consensus target price of $53.28, suggesting a potential upside of 45.34%. As a group, “Textiles, Apparel & Luxury Goods” companies have a potential upside of 11.91%. Given Birkenstock’s stronger consensus rating and higher probable upside, analysts plainly believe Birkenstock is more favorable than its competitors.

Volatility & Risk

Birkenstock has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500. Comparatively, Birkenstock’s competitors have a beta of 1.01, meaning that their average share price is 1% more volatile than the S&P 500.

Institutional & Insider Ownership

19.9% of Birkenstock shares are owned by institutional investors. Comparatively, 54.6% of shares of all “Textiles, Apparel & Luxury Goods” companies are owned by institutional investors. 16.3% of shares of all “Textiles, Apparel & Luxury Goods” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Birkenstock and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Birkenstock	16.26%	12.95%	7.15%
Birkenstock Competitors	-3.99%	13.49%	2.66%

Earnings and Valuation

This table compares Birkenstock and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Birkenstock	$2.32 billion	$385.46 million	16.59
Birkenstock Competitors	$5.77 billion	$471.21 million	27.53

Birkenstock’s competitors have higher revenue and earnings than Birkenstock. Birkenstock is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Birkenstock competitors beat Birkenstock on 7 of the 13 factors compared.

Birkenstock Company Profile

Birkenstock Holding plc manufactures and sells footwear products. It also offers sandals, shoes, closed-toe silhouettes, skincare products, and accessories. The company sells its products through e-commerce sites and a network of owned retail stores, as well as business-to-business channels. It operates in the United States, Brazil, Canada, Mexico, Europe, APMA, and internationally. Birkenstock Holding plc was founded in 1774 and is based in London, the United Kingdom. Birkenstock Holding plc is a subsidiary of BK LC Lux MidCo S.à r.l.