Critical Review: Birkenstock (BIRK) and Its Peers

Birkenstock (NYSE:BIRK) is one of 118 public companies in the “Textiles, Apparel & Luxury Goods” industry, but how does it contrast to its peers? We will compare Birkenstock to related companies based on the strength of its risk, earnings, institutional ownership, dividends, valuation, analyst recommendations and profitability.

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	14.82%	13.36%	7.21%
Birkenstock Competitors	-3.38%	13.20%	2.62%

Risk & Volatility

Birkenstock has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500. Comparatively, Birkenstock’s peers have a beta of 0.95, meaning that their average share price is 5% less volatile than the S&P 500.

Insider & Institutional Ownership

19.9% of Birkenstock shares are owned by institutional investors. Comparatively, 54.6% of shares of all “Textiles, Apparel & Luxury Goods” companies are owned by institutional investors. 16.3% of shares of all “Textiles, Apparel & Luxury Goods” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation & 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	17.01
Birkenstock Competitors	$5.66 billion	$478.13 million	27.63

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.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Birkenstock and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Birkenstock	1	4	13	0	2.67
Birkenstock Competitors	1593	7628	10205	343	2.47

Birkenstock currently has a consensus target price of $53.91, suggesting a potential upside of 48.75%. As a group, “Textiles, Apparel & Luxury Goods” companies have a potential upside of 17.52%. Given Birkenstock’s stronger consensus rating and higher possible upside, equities analysts clearly believe Birkenstock is more favorable than its peers.

Summary

Birkenstock beats its peers on 7 of the 13 factors compared.

About Birkenstock

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.