Designer Brands (DBI) and Finish Line (FINL) Financial Survey

Finish Line (NASDAQ:FINL) and Designer Brands (NYSE:DBI) are both retail/wholesale companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, earnings, institutional ownership, valuation and risk.

Dividends

Finish Line pays an annual dividend of $0.46 per share and has a dividend yield of 3.4%. Designer Brands pays an annual dividend of $1.00 per share and has a dividend yield of 4.9%. Designer Brands pays out 60.2% of its earnings in the form of a dividend. Finish Line has increased its dividend for 9 consecutive years.

Analyst Ratings

This is a summary of recent ratings and price targets for Finish Line and Designer Brands, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Finish Line 0 2 0 0 2.00
Designer Brands 0 1 0 1 3.00

Finish Line currently has a consensus target price of $15.00, suggesting a potential upside of 11.03%. Designer Brands has a consensus target price of $24.00, suggesting a potential upside of 18.40%. Given Designer Brands’ stronger consensus rating and higher possible upside, analysts plainly believe Designer Brands is more favorable than Finish Line.

Profitability

This table compares Finish Line and Designer Brands’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Finish Line N/A N/A N/A
Designer Brands -0.64% 14.76% 9.03%

Earnings and Valuation

This table compares Finish Line and Designer Brands’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Finish Line N/A N/A N/A N/A N/A
Designer Brands $3.18 billion 0.50 -$20.47 million $1.66 12.21

Finish Line has higher earnings, but lower revenue than Designer Brands.

Institutional and Insider Ownership

88.6% of Finish Line shares are owned by institutional investors. Comparatively, 85.5% of Designer Brands shares are owned by institutional investors. 6.0% of Finish Line shares are owned by insiders. Comparatively, 17.4% of Designer Brands shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Designer Brands beats Finish Line on 8 of the 12 factors compared between the two stocks.

About Finish Line

The Finish Line, Inc., together with its subsidiaries, operates as a retailer of athletic shoes, apparel, and accessories for men, women, and kids in the United States. The company offers athletic shoes, as well as an assortment of apparel and accessories of Nike, Brand Jordan, adidas, Under Armour, Puma, and other brands. It engages in the in-store and online retail of athletic shoes for Macy's Retail Holdings, Inc.; Macy's Puerto Rico, Inc.; and Macys.com, Inc., as well as online at macys.com. As of April 2, 2017, the company operated 573 Finish Line stores in 44 states in the United States and Puerto Rico. It also operates e-commerce site, finishline.com and mobile commerce site, m.finishline.com. The company was founded in 1976 and is based in Indianapolis, Indiana.

About Designer Brands

Designer Brands Inc. designs, producers, and retails footwear and accessories for women, men, and kids primarily in North America. It operates through three segments: The U.S. Retail, the Canada Retail, and the Brand Portfolio. The company also provides handbags, hosiery, jewelry, and other accessories. The company offers its products under the Vince Camuto, Louise et Cie, Sole Society, CC Corso Como, Enzo Angiolini, Jessica Simpson, Lucky, and other brands. It operates vincecamuto.com and solesociety.com e-commerce sites. As of March 19, 2019, it operated a portfolio of retail concepts in approximately 1,000 locations under the DSW Designer Shoe Warehouse, The Shoe Company, and Shoe Warehouse banners. Designer Brands Inc. is based in Columbus, Ohio.

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