Reviewing LuxExperience B.V. (NYSE:LUXE) & Digital Brands Group (NASDAQ:DBGI)

Digital Brands Group (NASDAQ:DBGI) and LuxExperience B.V. (NYSE:LUXE) are both small-cap consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.

Risk and Volatility

Digital Brands Group has a beta of -0.09, indicating that its stock price is 109% less volatile than the S&P 500. Comparatively, LuxExperience B.V. has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations 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	2	1	2.57

LuxExperience B.V. has a consensus target price of $11.18, indicating a potential upside of 11.30%. Given LuxExperience B.V.’s stronger consensus rating and higher probable upside, analysts clearly believe LuxExperience B.V. is more favorable than Digital Brands Group.

Valuation & Earnings

This table compares Digital Brands Group and LuxExperience B.V.”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Digital Brands Group	$7.38 million	0.08	-$28.25 million	($88.79)	-0.01
LuxExperience B.V.	$2.50 billion	0.34	-$195.62 million	($1.43)	-7.02

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.

Institutional and Insider Ownership

1.6% of Digital Brands Group shares are owned by institutional investors. Comparatively, 10.1% of LuxExperience B.V. shares are owned by institutional investors. 0.0% of Digital Brands Group shares are owned by company insiders. Comparatively, 1.9% of LuxExperience B.V. shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

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%

Summary

LuxExperience B.V. beats Digital Brands Group on 13 of the 15 factors compared between the two stocks.

About Digital Brands Group

Digital Brands Group, Inc. engages in the provision of apparel products under various brands on direct-to-consumer and wholesale basis. It operates through DSTLD, Bailey, H&J, Stateside, and Sundry segments. The company designs, manufactures, and sells women's apparel, such as tops, sweaters, dresses, jumpsuits, bottoms, sets, jackets, rompers, suiting, sportswear, shirts, jackets, pants, shorts, polos, T-shirts, skirts, athleisure bottoms, denims, and other accessory products, as well as suiting for men. It sells its products under the Bailey 44, Harper & Jones, Stateside, Sunnyside, DSTLD, Sundry, and ACE Studios brand names. The company sells directly to the consumer through its websites, as well as through its wholesale channel in specialty stores, select department stores, and own showrooms. Digital Brands Group, Inc. was formerly known as Denim.LA, Inc. Digital Brands Group, Inc. was incorporated in 2012 and is headquartered in Austin, Texas.

About LuxExperience B.V.

MYT Netherlands Parent B.V., through its subsidiary, Mytheresa Group GmbH, operates a luxury e-commerce platform for fashion consumers in Germany, the United States, the rest of Europe, and internationally. The company sells clothes, bags, shoes, accessories, and fine jewelry through online and retail stores. It serves high-income luxury consumers. The company was founded in 1987 and is based in Munich, Germany.