Contrasting Birkenstock (BIRK) & Its Rivals

Birkenstock (NYSE:BIRK) is one of 116 public companies in the “Textiles, Apparel & Luxury Goods” industry, but how does it weigh in compared to its peers? We will compare Birkenstock to related businesses based on the strength of its dividends, profitability, valuation, risk, earnings, analyst recommendations and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Birkenstock and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Birkenstock	1	4	13	0	2.67
Birkenstock Competitors	1535	7494	10051	336	2.47

Birkenstock presently has a consensus target price of $53.28, indicating a potential upside of 43.13%. As a group, “Textiles, Apparel & Luxury Goods” companies have a potential upside of 10.55%. Given Birkenstock’s stronger consensus rating and higher probable upside, research analysts clearly believe Birkenstock is more favorable than its peers.

Valuation and Earnings

This table compares Birkenstock and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Birkenstock	$2.32 billion	$385.46 million	16.84
Birkenstock Competitors	$5.76 billion	$471.21 million	27.79

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

Institutional and Insider Ownership

19.9% of Birkenstock shares are held by institutional investors. Comparatively, 54.9% of shares of all “Textiles, Apparel & Luxury Goods” companies are held by institutional investors. 15.3% of shares of all “Textiles, Apparel & Luxury Goods” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Birkenstock has a beta of 1.3, indicating that its stock price is 30% more volatile than the S&P 500. Comparatively, Birkenstock’s peers have a beta of 1.01, indicating that their average stock price is 1% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Birkenstock	16.26%	12.95%	7.15%
Birkenstock Competitors	-3.93%	13.45%	2.65%

Summary

Birkenstock peers beat Birkenstock 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.