Critical Analysis: Yue Yuen Industrial (OTCMKTS:YUEIY) & Birkenstock (NYSE:BIRK)

Yue Yuen Industrial (OTCMKTS:YUEIY) and Birkenstock (NYSE:BIRK) are both mid-cap consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, earnings, risk and analyst recommendations.

Analyst Recommendations

This is a breakdown of current recommendations for Yue Yuen Industrial and Birkenstock, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yue Yuen Industrial	0	0	0	0	0.00
Birkenstock	0	0	13	1	3.07

Birkenstock has a consensus price target of $68.58, suggesting a potential upside of 44.51%. Given Birkenstock’s stronger consensus rating and higher probable upside, analysts plainly believe Birkenstock is more favorable than Yue Yuen Industrial.

Valuation & Earnings

This table compares Yue Yuen Industrial and Birkenstock”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Yue Yuen Industrial	$8.18 billion	0.35	$392.42 million	N/A	N/A
Birkenstock	$1.96 billion	4.55	$207.85 million	$1.80	26.37

Yue Yuen Industrial has higher revenue and earnings than Birkenstock.

Profitability

This table compares Yue Yuen Industrial and Birkenstock’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Yue Yuen Industrial	N/A	N/A	N/A
Birkenstock	15.21%	11.52%	6.27%

Risk & Volatility

Yue Yuen Industrial has a beta of 0.69, suggesting that its share price is 31% less volatile than the S&P 500. Comparatively, Birkenstock has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500.

Insider and Institutional Ownership

0.1% of Yue Yuen Industrial shares are owned by institutional investors. Comparatively, 19.9% of Birkenstock shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Birkenstock beats Yue Yuen Industrial on 10 of the 12 factors compared between the two stocks.

About Yue Yuen Industrial

Yue Yuen Industrial (Holdings) Limited, an investment holding company, manufactures and sells athletic, athleisure, casual, and outdoor footwear in the People’s Republic of China, rest of Asia, the United States, Europe, and internationally. The company operates as an original design manufacturer/original equipment manufacturer for various international brand names, such as adidas, Asics, New Balance, Nike, Salomon, and Timberland. It retails sportswear, outdoor, and leisure products; and operates a sport service platform, which includes events, venues, media, broadcasting, shopping, activities, registration, ticketing, and other sports-related services online and offline for event sponsorship, promotions, sports center operations, and design services. In addition, the company provides commercial spaces to retailers and distributors; and corporate management consultation services. Further, it trades in footwear. The company was founded in 1969 and is headquartered in Kwun Tong, Hong Kong.

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.