Digital Brands Group (NASDAQ:DBGI – Get Free Report) and LuxExperience B.V. (NYSE:LUXE – Get Free Report) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, dividends, valuation and earnings.
Profitability
This table compares Digital Brands Group and LuxExperience B.V.’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Digital Brands Group | -768.25% | -561.70% | -90.27% |
| LuxExperience B.V. | -6.54% | -9.88% | -5.82% |
Analyst Recommendations
This is a summary of recent ratings for Digital Brands Group and LuxExperience B.V., as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Digital Brands Group | 1 | 0 | 0 | 0 | 1.00 |
| LuxExperience B.V. | 0 | 4 | 3 | 0 | 2.43 |
LuxExperience B.V. has a consensus target price of $11.38, suggesting a potential upside of 6.36%. Given LuxExperience B.V.’s stronger consensus rating and higher possible upside, analysts plainly believe LuxExperience B.V. is more favorable than Digital Brands Group.
Insider & Institutional Ownership
1.6% of Digital Brands Group shares are held by institutional investors. Comparatively, 10.1% of LuxExperience B.V. shares are held by institutional investors. 0.0% of Digital Brands Group shares are held by company insiders. Comparatively, 1.9% of LuxExperience B.V. shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Volatility and Risk
Digital Brands Group has a beta of -0.09, meaning that its share price is 109% less volatile than the S&P 500. Comparatively, LuxExperience B.V. has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500.
Earnings and Valuation
This table compares Digital Brands Group and LuxExperience B.V.”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Digital Brands Group | $5.78 million | 0.03 | -$28.25 million | ($88.79) | -0.00 |
| LuxExperience B.V. | $2.92 billion | 0.31 | -$195.62 million | ($1.43) | -7.48 |
Digital Brands Group has higher earnings, but lower revenue than LuxExperience B.V.. LuxExperience B.V. is trading at a lower price-to-earnings ratio than Digital Brands Group, indicating that it is currently the more affordable of the two stocks.
Summary
LuxExperience B.V. beats Digital Brands Group on 12 of the 14 factors compared between the two stocks.
About Digital Brands Group
Digital Brands Group, Inc. is a direct-to-consumer lifestyle apparel company that develops, acquires and operates digitally focused fashion brands. Its business has centered on selling clothing and accessories through company-operated e-commerce platforms, supported by wholesale distribution and other retail channels. The company’s brand portfolio has included DSTLD, a premium denim and essentials label; Bailey 44, a women’s contemporary apparel brand; and Stateside, which offers luxury casualwear and basics.
About LuxExperience B.V.
LuxExperience B.V. is a global luxury-fashion e-commerce company that operates the Mytheresa, NET-A-PORTER, MR PORTER and YOOX platforms. Its offerings include designer clothing, footwear, handbags, accessories, jewelry, watches and lifestyle products. The company serves customers internationally through its online platforms, which combine curated luxury assortments and editorial content with shopping services. Its brands address different segments of the market, from high-end designer fashion to a broader selection of luxury goods.
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