Head to Head Analysis: NEXT (OTCMKTS:NXGPF) and Genesco (NYSE:GCO)

NEXT (OTCMKTS:NXGPF) and Genesco (NYSE:GCO) are both consumer cyclical companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.

Analyst Ratings

This is a summary of recent ratings for NEXT and Genesco, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NEXT	0	2	0	0	2.00
Genesco	0	1	0	0	2.00

Genesco has a consensus price target of $31.00, indicating a potential upside of 14.43%. Given Genesco’s higher possible upside, analysts plainly believe Genesco is more favorable than NEXT.

Institutional & Insider Ownership

47.2% of NEXT shares are owned by institutional investors. Comparatively, 94.5% of Genesco shares are owned by institutional investors. 7.1% of Genesco shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares NEXT and Genesco’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NEXT	N/A	N/A	N/A
Genesco	-0.03%	0.49%	0.19%

Earnings & Valuation

This table compares NEXT and Genesco”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NEXT	N/A	N/A	N/A	$3.87	29.10
Genesco	$2.30 billion	0.14	-$16.83 million	($1.95)	-13.86

NEXT has higher earnings, but lower revenue than Genesco. Genesco is trading at a lower price-to-earnings ratio than NEXT, indicating that it is currently the more affordable of the two stocks.

Summary

Genesco beats NEXT on 6 of the 9 factors compared between the two stocks.

About NEXT

NEXT plc engages in the retail of clothing, beauty, footwear, and home products in the United Kingdom, rest of Europe, the Middle East, Asia, and internationally. The company operates through NEXT Retail; NEXT Online; NEXT Finance; Total Platform; Property Management; and Franchise, Sourcing, and other segments. It offers consumer credit; NEXT branded products; and women's, men's, children's, clothing, homeware, and beauty products under the LABEL brand, as well as other third-party brands. The company also provides property management services, including holding and lease of properties; operates call centers; and websites, marketing, warehousing, and distribution networks to third-party brands. It operates through retail stores, online retail platforms, and franchise stores. The company was formerly known as J Hepworth & Son and changed its name to NEXT plc in 1986. NEXT plc was founded in 1864 and is headquartered in Enderby, the United Kingdom.

About Genesco

Genesco Inc. operates as a retailer and wholesaler of footwear, apparel, and accessories in the United States, Puerto Rico, Canada, the United Kingdom, and the Republic of Ireland. The company operates through four segments: Journeys Group, Schuh Group, Johnston & Murphy Group, and Genesco Brands. The Journeys Group segment offers footwear and accessories through the Journeys, Journeys Kidz, and Little Burgundy retail chains, as well as through e-commerce and catalogs for young men, women, and children. Its Schuh Group segment operates Schuh retail footwear stores that offer casual and athletic footwear, as well as sells footwear through e-commerce. The Johnston & Murphy Group segment involved in the retail and e-commerce operations; and wholesale distribution of men’s dress and casual footwear, apparel, and accessories, as well as women’s footwear and accessories. Its Genesco Brands Group segment markets footwear under the Levi’s, Dockers, and G.H. Bass brands for men, women, and children, as well as designs and manufactures the STARTER brands footwear. The company operates through Journeys, Journeys Kidz, Schuh, Little Burgundy, and Johnston & Murphy brand names; and e-commerce websites, including journeys.com, journeyskidz.com, journeys.ca, schuh.co.uk, schuh.ie, schuh.eu, johnstonmurphy.com, littleburgundyshoes.com, johnstonmurphy.ca, nashvilleshoewarehouse.com, and dockersshoes.com. Genesco Inc. was incorporated in 1934 and is headquartered in Nashville, Tennessee.