Reviewing Duluth Holdings (DLTH) & Columbia Sportswear (COLM)
Duluth Holdings (NASDAQ: DLTH) and Columbia Sportswear (NASDAQ:COLM) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, profitability, institutional ownership, valuation, dividends, analyst recommendations and risk.
This is a breakdown of recent ratings for Duluth Holdings and Columbia Sportswear, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Duluth Holdings currently has a consensus target price of $27.01, indicating a potential upside of 39.93%. Columbia Sportswear has a consensus target price of $63.45, indicating a potential upside of 8.93%. Given Duluth Holdings’ stronger consensus rating and higher probable upside, analysts plainly believe Duluth Holdings is more favorable than Columbia Sportswear.
Valuation and Earnings
This table compares Duluth Holdings and Columbia Sportswear’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Duluth Holdings||$391.17 million||1.60||$35.79 million||$0.58||33.28|
|Columbia Sportswear||$2.41 billion||1.69||$319.52 million||$2.72||21.42|
Columbia Sportswear has higher revenue and earnings than Duluth Holdings. Columbia Sportswear is trading at a lower price-to-earnings ratio than Duluth Holdings, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
33.5% of Duluth Holdings shares are owned by institutional investors. Comparatively, 39.0% of Columbia Sportswear shares are owned by institutional investors. 70.4% of Duluth Holdings shares are owned by company insiders. Comparatively, 58.9% of Columbia Sportswear shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Columbia Sportswear pays an annual dividend of $0.72 per share and has a dividend yield of 1.2%. Duluth Holdings does not pay a dividend. Columbia Sportswear pays out 26.5% of its earnings in the form of a dividend.
Volatility and Risk
Duluth Holdings has a beta of 0.19, suggesting that its stock price is 81% less volatile than the S&P 500. Comparatively, Columbia Sportswear has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500.
This table compares Duluth Holdings and Columbia Sportswear’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Columbia Sportswear beats Duluth Holdings 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.
Columbia Sportswear Company Profile
Columbia Sportswear Company is an apparel and footwear company. The Company designs, sources, markets and distributes outdoor lifestyle apparel, footwear, accessories and equipment under the Columbia, Mountain Hardwear, Sorel, prAna and other brands. Its geographic segments are the United States, Latin America and Asia Pacific (LAAP), Europe, Middle East and Africa (EMEA), and Canada. The Company develops and manages its merchandise in categories, including apparel, accessories and equipment, and footwear. It distributes its products through a mix of wholesale distribution channels, its own direct-to-consumer channels (retail stores and e-commerce), independent distributors and licensees. As of December 31, 2016, its products were sold in approximately 90 countries. In 59 of those countries, it sells to independent distributors to whom it has granted distribution rights. Contract manufacturers located outside the United States manufacture all of its products.
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