Genesco (NYSE:GCO) vs. Digital Brands Group (NASDAQ:DBGI) Head-To-Head Review

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Genesco	1.71%	3.14%	1.19%
Digital Brands Group	-768.25%	-561.70%	-90.27%

Risk and Volatility

Genesco has a beta of 1.82, indicating that its share price is 82% more volatile than the S&P 500. Comparatively, Digital Brands Group has a beta of -0.09, indicating that its share price is 109% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Genesco and Digital Brands Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Genesco	0	4	0	1	2.40
Digital Brands Group	1	0	0	0	1.00

Genesco currently has a consensus price target of $36.00, indicating a potential downside of 0.02%. Given Genesco’s stronger consensus rating and higher possible upside, equities analysts clearly believe Genesco is more favorable than Digital Brands Group.

Institutional and Insider Ownership

94.5% of Genesco shares are owned by institutional investors. Comparatively, 1.6% of Digital Brands Group shares are owned by institutional investors. 23.1% of Genesco shares are owned by insiders. Comparatively, 0.0% of Digital Brands Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Genesco and Digital Brands Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Genesco	$2.44 billion	0.16	$13.27 million	$3.84	9.38
Digital Brands Group	$7.38 million	0.04	-$28.25 million	($88.79)	-0.00

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

Summary

Genesco beats Digital Brands Group on 14 of the 14 factors compared between the two stocks.

About Genesco

Genesco Inc. operates as a retailer and wholesaler of footwear, apparel, and accessories in the United States, Puerto Rico, Canada, the United Kingdom, and the Republic of Ireland. The company operates through four segments: Journeys Group, Schuh Group, Johnston & Murphy Group, and Genesco Brands. The Journeys Group segment offers footwear and accessories through the Journeys, Journeys Kidz, and Little Burgundy retail chains, as well as through e-commerce and catalogs for young men, women, and children. Its Schuh Group segment operates Schuh retail footwear stores that offer casual and athletic footwear, as well as sells footwear through e-commerce. The Johnston & Murphy Group segment involved in the retail and e-commerce operations; and wholesale distribution of men’s dress and casual footwear, apparel, and accessories, as well as women’s footwear and accessories. Its Genesco Brands Group segment markets footwear under the Levi’s, Dockers, and G.H. Bass brands for men, women, and children, as well as designs and manufactures the STARTER brands footwear. The company operates through Journeys, Journeys Kidz, Schuh, Little Burgundy, and Johnston & Murphy brand names; and e-commerce websites, including journeys.com, journeyskidz.com, journeys.ca, schuh.co.uk, schuh.ie, schuh.eu, johnstonmurphy.com, littleburgundyshoes.com, johnstonmurphy.ca, nashvilleshoewarehouse.com, and dockersshoes.com. Genesco Inc. was incorporated in 1934 and is headquartered in Nashville, Tennessee.

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.