Head-To-Head Review: Xxl Asa (OTCMKTS:XXLLY) versus Winmark (NASDAQ:WINA)

Winmark (NASDAQ:WINA) and Xxl Asa (OTCMKTS:XXLLY) are both consumer cyclical companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, risk, dividends and valuation.

Analyst Ratings

This is a summary of current ratings for Winmark and Xxl Asa, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Winmark	0	0	1	0	3.00
Xxl Asa	0	0	0	0	N/A

Winmark currently has a consensus price target of $445.00, indicating a potential upside of 17.51%. Given Winmark’s higher possible upside, equities analysts plainly believe Winmark is more favorable than Xxl Asa.

Valuation & Earnings

This table compares Winmark and Xxl Asa”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Winmark	$81.78 million	16.19	$40.18 million	$10.95	34.58
Xxl Asa	N/A	N/A	N/A	N/A	N/A

Winmark has higher revenue and earnings than Xxl Asa.

Insider & Institutional Ownership

73.3% of Winmark shares are held by institutional investors. 10.6% of Winmark shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Winmark and Xxl Asa’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Winmark	48.57%	-85.12%	95.78%
Xxl Asa	N/A	N/A	N/A

Summary

Winmark beats Xxl Asa on 7 of the 8 factors compared between the two stocks.

About Winmark

Winmark Corporation, a resale company operates as a franchisor for small business in the United States and Canada. The company franchises retail stores concepts that buy, sell and trade merchandise. It also operates middle-market equipment leasing business. In addition, the company buys and sells used clothing and accessories geared toward the teenage and young adult market under Plato’s Closet brand; and operates stores which buys and sells used and new children’s clothing, toys, furniture, equipment, and accessories primarily to parents of children ages infant to 12 years under the Once Upon A Child brand. Further, it buys, sells, trades in, and used and new sporting goods, equipment, and accessories for various athletic activities including team sports, such as baseball/softball, hockey, football, lacrosse, and soccer, as well as fitness, ski/snowboard, golf, and others under the Play It Again Sports brand; and buys and sells used women’s apparel, shoes, and accessories under the Style Encore brand. Additionally, the company buys, sells, trades in, and used and new musical instruments, speakers, amplifiers, music-related electronics, and related accessories under the Music Go Round brand. Winmark Corporation was incorporated in 1988 and is headquartered in Minneapolis, Minnesota.

About Xxl Asa

XXL ASA operates as a sports retailer in Norway, Sweden, and Finland. It offers sports equipment and sportswear for various sports, including running, football, golf, water sports, racket sports, and ice hockey; and fitness equipment, including treadmills and rowing machines, as well as food supplements and nutrition. The company also provides clothes for men, women, and children for baselayers, outerwear, casual wear, sportswear, and swimwear, as well as lifestyle and winter shoes; outdoor and hunting products for fishing, wilderness living, and camping, such as tents, lavvos, sleeping bags, backpacks, cooking equipment, and climbing gear; and hunting products, including firearms and ammunition, clothes, binoculars, optics, knives, and axes. In addition, it offers skis and ski accessories, such as shoes, poles, clothes, and other equipment for cross-country and downhill skiing, as well as snowboarding; bikes comprising hybrid, mountain, city, and electric bikes for children, women, and men; and bike equipment, such as helmets, shoes, spare parts, and clothes. Further, the company provides products that connect technology and sports/outdoor activities, including sport watches, action cameras, drones, GPS, earplugs and headphones, portable loudspeakers, sunglasses, pulse meters, power banks, and cycle computers. It also operates e-commerce websites, such as xxl.no, xxl.se, and xxl.fi. The company was founded in 2000 and is headquartered in Oslo, Norway.