Vince Holding Corp. (NYSE: VNCE) and Duluth Holdings (NASDAQ:DLTH) are both small-cap consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, earnings, risk, valuation and institutional ownership.

Valuation and Earnings

This table compares Vince Holding Corp. and Duluth Holdings’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Vince Holding Corp. $258.60 million 0.09 $1.97 million ($3.44) -0.13
Duluth Holdings $391.17 million 1.59 $35.79 million $0.56 34.32

Duluth Holdings has higher revenue and earnings than Vince Holding Corp.. Vince Holding Corp. is trading at a lower price-to-earnings ratio than Duluth Holdings, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

23.7% of Vince Holding Corp. shares are held by institutional investors. Comparatively, 33.2% of Duluth Holdings shares are held by institutional investors. 56.5% of Vince Holding Corp. shares are held by company insiders. Comparatively, 70.4% of Duluth Holdings shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Vince Holding Corp. and Duluth Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vince Holding Corp. -65.75% -24.26% -4.82%
Duluth Holdings 4.71% 17.31% 12.18%

Risk & Volatility

Vince Holding Corp. has a beta of 1.82, suggesting that its share price is 82% more volatile than the S&P 500. Comparatively, Duluth Holdings has a beta of 0.19, suggesting that its share price is 81% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Vince Holding Corp. and Duluth Holdings, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vince Holding Corp. 0 2 2 0 2.50
Duluth Holdings 0 2 5 0 2.71

Vince Holding Corp. currently has a consensus price target of $3.88, suggesting a potential upside of 736.93%. Duluth Holdings has a consensus price target of $27.01, suggesting a potential upside of 40.51%. Given Vince Holding Corp.’s higher probable upside, equities research analysts plainly believe Vince Holding Corp. is more favorable than Duluth Holdings.

Summary

Duluth Holdings beats Vince Holding Corp. on 11 of the 13 factors compared between the two stocks.

Vince Holding Corp. Company Profile

Vince Holding Corp. (Vince) is a United States-based company, which offers a range of women’s and men’s apparel, women’s and men’s footwear, and handbags. The Company operates as a fashion brand. The Company operates in two segments: Wholesale and Direct-to-consumer. The Company’s Wholesale segment consists of its operations to distribute products to various department stores and specialty stores in the United States and select international markets. The Company’s Direct-to-consumer segment consists of its operations to distribute products directly to the consumer through its branded specialty retail stores, outlet stores and e-commerce platform. The Company utilizes luxe fabrications and various techniques to create its product assortment. The Company serves its customers through various channels, including wholesale department stores and specialty stores in the United States, as well as through its branded retail locations and its Website.

Duluth Holdings Company Profile

Duluth Holdings Inc. is a lifestyle brand of men’s and women’s casual wear, workwear and accessories. The Company offers a line of functional products, such as its Longtail T shirts, Buck Naked underwear and Fire Hose work pants. The Company’s segments include direct and retail. The direct segment includes revenues from the Company’s Website and catalogs. The retail segment includes revenues from the Company’s retail and outlet stores. The Company offers its products under the Duluth Trading brand. The Company’s Website, www.duluthtrading.com, serves as a storefront for its product assortment. As of January 29, 2017, the Company operated 14 retail stores and two outlet stores. The Company’s stores range in size from approximately 6,000 to 14,000 selling square feet. The Company’s products also include Ballroom jeans, Duluthflex clothing, Armachillo shirts, Dry on the Fly pants, Armachillo underwear and No-Yank Tank.

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