Destination XL Group (NASDAQ:DXLG) versus Carvana (NYSE:CVNA) Financial Analysis

Carvana (NYSE:CVNA) and Destination XL Group (NASDAQ:DXLG) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, analyst recommendations, profitability, dividends, institutional ownership and risk.

Insider and Institutional Ownership

56.7% of Carvana shares are owned by institutional investors. Comparatively, 73.5% of Destination XL Group shares are owned by institutional investors. 15.2% of Carvana shares are owned by company insiders. Comparatively, 14.3% of Destination XL Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings for Carvana and Destination XL Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Carvana	0	8	16	1	2.72
Destination XL Group	1	0	1	0	2.00

Carvana presently has a consensus price target of $83.04, indicating a potential upside of 37.66%. Destination XL Group has a consensus price target of $1.25, indicating a potential upside of 174.18%. Given Destination XL Group’s higher probable upside, analysts plainly believe Destination XL Group is more favorable than Carvana.

Profitability

This table compares Carvana and Destination XL Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Carvana	6.26%	37.06%	12.21%
Destination XL Group	-8.77%	-9.05%	-2.75%

Risk and Volatility

Carvana has a beta of 3.55, meaning that its share price is 255% more volatile than the S&P 500. Comparatively, Destination XL Group has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500.

Valuation & Earnings

This table compares Carvana and Destination XL Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Carvana	$25.06 billion	2.65	$1.41 billion	$1.81	33.33
Destination XL Group	$435.02 million	0.06	-$35.91 million	($0.69)	-0.66

Carvana has higher revenue and earnings than Destination XL Group. Destination XL Group is trading at a lower price-to-earnings ratio than Carvana, indicating that it is currently the more affordable of the two stocks.

Summary

Carvana beats Destination XL Group on 12 of the 14 factors compared between the two stocks.

About Carvana

Carvana Co., together with its subsidiaries, operates an e-commerce platform for buying and selling used cars in the United States. Its platform allows customers to research and identify a vehicle; inspect it using company's 360-degree vehicle imaging technology; obtain financing and warranty coverage; purchase the vehicle; and schedule delivery or pick-up from their desktop or mobile devices. The company also operates auction sites. The company was founded in 2012 and is based in Tempe, Arizona.

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.