Duluth Holdings (NASDAQ: DLTH) and Ralph Lauren Corp (NYSE:RL) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.

Valuation & Earnings

This table compares Duluth Holdings and Ralph Lauren Corp’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Duluth Holdings $391.17 million 1.62 $35.79 million $0.58 33.62
Ralph Lauren Corp $6.45 billion 1.12 $987.10 million ($0.23) -385.83

Ralph Lauren Corp has higher revenue and earnings than Duluth Holdings. Ralph Lauren 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.

Volatility & Risk

Duluth Holdings has a beta of 0.19, meaning that its share price is 81% less volatile than the S&P 500. Comparatively, Ralph Lauren Corp has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500.

Dividends

Ralph Lauren Corp pays an annual dividend of $2.00 per share and has a dividend yield of 2.3%. Duluth Holdings does not pay a dividend. Ralph Lauren Corp pays out -869.6% of its earnings in the form of a dividend. Ralph Lauren Corp has raised its dividend for 5 consecutive years.

Insider & Institutional Ownership

33.5% of Duluth Holdings shares are held by institutional investors. Comparatively, 62.9% of Ralph Lauren Corp shares are held by institutional investors. 70.4% of Duluth Holdings shares are held by company insiders. Comparatively, 32.9% of Ralph Lauren Corp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for Duluth Holdings and Ralph Lauren Corp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Duluth Holdings 0 3 5 0 2.63
Ralph Lauren Corp 1 13 3 0 2.12

Duluth Holdings presently has a consensus price target of $27.01, suggesting a potential upside of 38.49%. Ralph Lauren Corp has a consensus price target of $81.75, suggesting a potential downside of 7.88%. Given Duluth Holdings’ stronger consensus rating and higher probable upside, research analysts clearly believe Duluth Holdings is more favorable than Ralph Lauren Corp.

Profitability

This table compares Duluth Holdings and Ralph Lauren Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Duluth Holdings 4.64% 17.46% 12.15%
Ralph Lauren Corp 4.42% 7.17% 4.16%

Summary

Duluth Holdings beats Ralph Lauren Corp on 9 of the 16 factors compared between the two stocks.

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.

Ralph Lauren Corp Company Profile

Ralph Lauren Corporation is engaged in the design, marketing and distribution of lifestyle products, including apparel, accessories, home furnishings and other licensed product categories. The Company operates through three segments: Wholesale, Retail and Licensing. Wholesale business consists of sales made to department stores and specialty stores around the world. Retail business consists of sales made directly to consumers through retail channel, which includes Company’s’ retail stores, concession-based shop-within-shops and e-commerce operations around the world. Licensing business consists of royalty-based arrangements, under which the Company licenses to unrelated third parties for specified periods the right to operate retail stores and/or to use its various trademarks in connection with the manufacture and sale of designated products, such as certain apparel, eyewear, fragrances and home furnishings.

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