Mr Price Group (OTCMKTS:MRPLY) and Destination XL Group (NASDAQ:DXLG) Critical Analysis

Mr Price Group (OTCMKTS:MRPLY) and Destination XL Group (NASDAQ:DXLG) are both consumer cyclical companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, risk, earnings, dividends and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Mr Price Group and Destination XL Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mr Price Group	0	0	0	0	0.00
Destination XL Group	0	1	1	0	2.50

Destination XL Group has a consensus price target of $3.50, suggesting a potential upside of 16.67%. Given Destination XL Group’s stronger consensus rating and higher probable upside, analysts clearly believe Destination XL Group is more favorable than Mr Price Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Mr Price Group	N/A	N/A	N/A
Destination XL Group	3.11%	11.10%	4.54%

Insider & Institutional Ownership

0.3% of Mr Price Group shares are owned by institutional investors. Comparatively, 73.5% of Destination XL Group shares are owned by institutional investors. 12.4% of Destination XL Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Mr Price Group 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
Mr Price Group	N/A	N/A	N/A	$8.28	1.74
Destination XL Group	$521.82 million	0.33	$27.85 million	$0.24	12.50

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

Summary

Destination XL Group beats Mr Price Group on 10 of the 11 factors compared between the two stocks.

About Mr Price Group

Mr Price Group Limited, together with its subsidiaries, operates as a fashion retailer serving women, men, and children in South Africa and internationally. The company operates through Apparel, Homeware, Financial Services, and Telecoms segments. It offers clothing, cosmetics, babywear, school wear, footwear, underwear, and accessories; furniture and kids merchandise; sporting, outdoor, and fitness products comprising footwear, apparel, equipment, and accessories; women’s smart and casual fashion and intimate wear; and home textile and decor products for bedroom, living-room, bathroom, kitchen, and dining-room. In addition, the company provides credit services; insurance products; cellular products and services; mobile devices and accessories; and value-added services. It serves its customers through an omni-channel retail distribution in Africa, as well as through its online channels. Mr Price Group Limited was founded in 1885 and is based in Durban, South Africa.

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.