Xxl Asa (OTCMKTS:XXLLY) & Winmark (NASDAQ:WINA) Financial Analysis

Xxl Asa (OTCMKTS:XXLLY) and Winmark (NASDAQ:WINA) are both consumer cyclical companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.

Analyst Ratings

This is a summary of current ratings and recommmendations for Xxl Asa and Winmark, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xxl Asa	0	0	0	0	N/A
Winmark	0	0	1	0	3.00

Winmark has a consensus target price of $445.00, suggesting a potential upside of 19.87%. Given Winmark’s higher possible upside, analysts clearly believe Winmark is more favorable than Xxl Asa.

Earnings and Valuation

This table compares Xxl Asa and Winmark”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xxl Asa	N/A	N/A	N/A	N/A	N/A
Winmark	$81.78 million	15.87	$40.18 million	$10.95	33.90

Winmark has higher revenue and earnings than Xxl Asa.

Profitability

This table compares Xxl Asa and Winmark’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Xxl Asa	N/A	N/A	N/A
Winmark	48.57%	-85.12%	95.78%

Institutional and Insider Ownership

73.3% of Winmark shares are held by institutional investors. 10.6% of Winmark shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Winmark beats Xxl Asa on 7 of the 8 factors compared between the two stocks.

About Xxl Asa

XXL ASA operates as a sports retailer in Norway, Sweden, and Finland. It offers sports equipment and sportswear for various sports, including running, football, golf, water sports, racket sports, and ice hockey; and fitness equipment, including treadmills and rowing machines, as well as food supplements and nutrition. The company also provides clothes for men, women, and children for baselayers, outerwear, casual wear, sportswear, and swimwear, as well as lifestyle and winter shoes; outdoor and hunting products for fishing, wilderness living, and camping, such as tents, lavvos, sleeping bags, backpacks, cooking equipment, and climbing gear; and hunting products, including firearms and ammunition, clothes, binoculars, optics, knives, and axes. In addition, it offers skis and ski accessories, such as shoes, poles, clothes, and other equipment for cross-country and downhill skiing, as well as snowboarding; bikes comprising hybrid, mountain, city, and electric bikes for children, women, and men; and bike equipment, such as helmets, shoes, spare parts, and clothes. Further, the company provides products that connect technology and sports/outdoor activities, including sport watches, action cameras, drones, GPS, earplugs and headphones, portable loudspeakers, sunglasses, pulse meters, power banks, and cycle computers. It also operates e-commerce websites, such as xxl.no, xxl.se, and xxl.fi. The company was founded in 2000 and is headquartered in Oslo, Norway.

About Winmark

Winmark Corporation, a resale company operates as a franchisor for small business in the United States and Canada. The company franchises retail stores concepts that buy, sell and trade merchandise. It also operates middle-market equipment leasing business. In addition, the company buys and sells used clothing and accessories geared toward the teenage and young adult market under Plato’s Closet brand; and operates stores which buys and sells used and new children’s clothing, toys, furniture, equipment, and accessories primarily to parents of children ages infant to 12 years under the Once Upon A Child brand. Further, it buys, sells, trades in, and used and new sporting goods, equipment, and accessories for various athletic activities including team sports, such as baseball/softball, hockey, football, lacrosse, and soccer, as well as fitness, ski/snowboard, golf, and others under the Play It Again Sports brand; and buys and sells used women’s apparel, shoes, and accessories under the Style Encore brand. Additionally, the company buys, sells, trades in, and used and new musical instruments, speakers, amplifiers, music-related electronics, and related accessories under the Music Go Round brand. Winmark Corporation was incorporated in 1988 and is headquartered in Minneapolis, Minnesota.