Comparing XCel Brands (XELB) & Finjan (FNJN)

XCel Brands (NASDAQ: XELB) and Finjan (NASDAQ:FNJN) are both small-cap retail/wholesale companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, earnings, profitability, dividends, risk, institutional ownership and analyst recommendations.

Profitability

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This table compares XCel Brands and Finjan’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
XCel Brands -31.92% 2.93% 2.13%
Finjan N/A 80.40% 35.19%

Earnings and Valuation

This table compares XCel Brands and Finjan’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
XCel Brands $31.71 million 1.60 -$10.12 million $0.09 30.56
Finjan $50.48 million 1.57 $22.81 million $0.35 8.14

Finjan has higher revenue and earnings than XCel Brands. Finjan is trading at a lower price-to-earnings ratio than XCel Brands, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings for XCel Brands and Finjan, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
XCel Brands 0 0 3 0 3.00
Finjan 0 0 1 0 3.00

XCel Brands currently has a consensus target price of $4.67, indicating a potential upside of 69.70%. Finjan has a consensus target price of $5.00, indicating a potential upside of 75.44%. Given Finjan’s higher possible upside, analysts plainly believe Finjan is more favorable than XCel Brands.

Institutional & Insider Ownership

21.6% of XCel Brands shares are held by institutional investors. Comparatively, 35.7% of Finjan shares are held by institutional investors. 59.9% of XCel Brands shares are held by company insiders. Comparatively, 9.6% of Finjan shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

XCel Brands has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500. Comparatively, Finjan has a beta of -0.69, meaning that its share price is 169% less volatile than the S&P 500.

Summary

Finjan beats XCel Brands on 8 of the 13 factors compared between the two stocks.

About XCel Brands

Xcel Brands, Inc., together with its subsidiaries, operates as a media and brand management company in the United States. The company designs, produces, licenses, markets, and sells branded apparel, footwear, accessories, jewelry, home goods, and other consumer products; and acquires consumer lifestyle brands, including the Isaac Mizrahi brands, the Judith Ripka brands, the H Halston brands, the C Wonder brand, and the Highline Collective brand, as well as manages and designs the Liz Claiborne New York brand. It licenses its brands to third parties; and provides design, production, and marketing services to wholesale manufacturers, sourcing and design companies, and retailers for promotion and distribution through a ubiquitous-channel retail sales strategy, including distribution through interactive television, the Internet, and traditional brick-and-mortar retail channels. The company also offers marketing, advertising, public relations, and social media marketing campaigns for its brands. In addition, it markets the Mizrahi brands through isaacmizrahi.com; the Ripka brands through judithripka.com; and the C Wonder brands through cwonder.com. Xcel Brands, Inc. is headquartered in New York, New York.

About Finjan

Finjan Holdings, Inc., through its subsidiaries, operates as a cybersecurity company, provides intellectual property licensing and enforcement services. The company owns a portfolio of patents related to software and hardware technologies that proactively detect malicious code and thereby protects end users from identity and data theft, spyware, malware, phishing, trojans, and other Web and network threats. Its patented technologies are used in specific cybersecurity technology areas, including endpoint/cloud software, Web gateway/Internet infrastructure, networking equipment markets, and mobile security. The company’s technology scans and repels the latest and unknown threats to network, Web, and endpoint devices on a real-time basis. It also provides investments in cybersecurity technologies and intellectual property; offers cyber risk and cyber security advisory services; and develops mobile security applications. Finjan Holdings, Inc. was founded in 1997 and is headquartered in East Palo Alto, California.

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