Analyzing Destination XL Group (NASDAQ:DXLG) & Cache (OTCMKTS:CACH)

Destination XL Group (NASDAQ:DXLG) and Cache (OTCMKTS:CACH) are both retail/wholesale companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.

Analyst Ratings

This is a summary of current recommendations for Destination XL Group and Cache, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Destination XL Group	1	0	1	0	2.00
Cache	0	0	1	0	3.00

Destination XL Group currently has a consensus target price of $2.50, suggesting a potential upside of 260.18%. Given Destination XL Group’s higher possible upside, research analysts plainly believe Destination XL Group is more favorable than Cache.

Earnings & Valuation

This table compares Destination XL Group and Cache”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Destination XL Group	$467.02 million	0.08	$3.06 million	($0.14)	-4.96
Cache	N/A	N/A	N/A	N/A	N/A

Destination XL Group has higher revenue and earnings than Cache.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Destination XL Group	-1.73%	-3.81%	-1.36%
Cache	N/A	N/A	N/A

Institutional & Insider Ownership

73.5% of Destination XL Group shares are owned by institutional investors. 14.3% of Destination XL Group shares are owned by company insiders. Comparatively, 23.0% of Cache shares 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.

Summary

Cache beats Destination XL Group on 5 of the 8 factors compared between the two stocks.

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.

About Cache

Cache, Inc., together with its subsidiaries, operates as a mall-based and online woman’s specialty retailer of apparel and accessories in the United States. The company designs and markets sportswear, such as tops, sweaters, and jackets and bottoms for day or evening events; dresses ranges from shorter lengths to long for day, evening, and events; and accessories, including jewelry, belts, scarves, and handbags under the Cache brand name. The company was founded in 1975 and is headquartered in New York, New York.