Critical Survey: Birkenstock (BIRK) & The Competition

Birkenstock (NYSE:BIRK) is one of 118 public companies in the “Textiles, Apparel & Luxury Goods” industry, but how does it compare to its rivals? We will compare Birkenstock to similar businesses based on the strength of its institutional ownership, profitability, analyst recommendations, dividends, earnings, risk and valuation.

Insider and Institutional Ownership

19.9% of Birkenstock shares are owned by institutional investors. Comparatively, 54.9% of shares of all “Textiles, Apparel & Luxury Goods” companies are owned by institutional investors. 15.3% of shares of all “Textiles, Apparel & Luxury Goods” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility and Risk

Birkenstock has a beta of 1.3, meaning that its stock price is 30% more volatile than the S&P 500. Comparatively, Birkenstock’s rivals have a beta of 0.95, meaning that their average stock price is 5% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Birkenstock	14.82%	13.36%	7.21%
Birkenstock Competitors	-3.35%	13.22%	2.64%

Analyst Ratings

This is a summary of recent recommendations for Birkenstock and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Birkenstock	1	4	13	0	2.67
Birkenstock Competitors	1595	7630	10211	343	2.47

Birkenstock presently has a consensus target price of $53.91, indicating a potential upside of 50.53%. As a group, “Textiles, Apparel & Luxury Goods” companies have a potential upside of 18.10%. Given Birkenstock’s stronger consensus rating and higher possible upside, research analysts clearly believe Birkenstock is more favorable than its rivals.

Valuation and Earnings

This table compares Birkenstock and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Birkenstock	$2.27 billion	$385.46 million	16.81
Birkenstock Competitors	$5.70 billion	$474.14 million	27.56

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

Summary

Birkenstock beats its rivals 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.