Duluth (NASDAQ:DLTH – Get Free Report) and Home Depot (NYSE:HD – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, earnings, risk and valuation.
Earnings & Valuation
This table compares Duluth and Home Depot”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Duluth | $565.18 million | 0.27 | -$16.39 million | $0.14 | 29.11 |
| Home Depot | $164.68 billion | 2.08 | $14.16 billion | $14.29 | 24.03 |
Home Depot has higher revenue and earnings than Duluth. Home Depot is trading at a lower price-to-earnings ratio than Duluth, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
24.4% of Duluth shares are held by institutional investors. Comparatively, 70.9% of Home Depot shares are held by institutional investors. 40.4% of Duluth shares are held by insiders. Comparatively, 0.1% of Home Depot 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 Duluth and Home Depot’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Duluth | 1.07% | -3.03% | -1.21% |
| Home Depot | 8.41% | 106.42% | 13.76% |
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Duluth and Home Depot, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Duluth | 0 | 3 | 0 | 0 | 2.00 |
| Home Depot | 1 | 13 | 18 | 1 | 2.58 |
Duluth presently has a consensus price target of $5.00, suggesting a potential upside of 22.70%. Home Depot has a consensus price target of $375.31, suggesting a potential upside of 9.27%. Given Duluth’s higher possible upside, equities research analysts plainly believe Duluth is more favorable than Home Depot.
Risk & Volatility
Duluth has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500. Comparatively, Home Depot has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500.
Summary
Home Depot beats Duluth on 11 of the 15 factors compared between the two stocks.
About Duluth
Duluth Holdings Inc. sells casual wear, workwear, and accessories for men and women under the Duluth Trading brand in the United States. It provides shirts, pants, underwear, tanks, outerwear, footwear, accessories, and hard goods. The company offers its products under various trademarks, trade names, and service marks, including Alaskan Hardgear, Armachillo, Ballroom, Bucket Master, Cab Commander, Crouch Gusset, Dry on the Fly, Duluth Trading Co, Duluthflex, Fire Hose, Longtail T, No-Yank, No Polo Shirt, Wild Boar Mocs, and Buck Naked. Duluth Holdings Inc. markets its products through its Website, catalogs, and retail stores. As of May 17, 2018, it operated 36 retail stores. The company was formerly known as GEMPLER'S, Inc. Duluth Holdings Inc. was founded in 1989 and is headquartered in Belleville, Wisconsin.
About Home Depot
The Home Depot, Inc. operates as a home improvement retailer in the United States and internationally. It sells various building materials, home improvement products, lawn and garden products, and décor products, as well as facilities maintenance, repair, and operations products. The company also offers installation services for flooring, water heaters, bath, garage doors, cabinets, cabinet makeovers, countertops, sheds, furnaces and central air systems, and windows. In addition, it provides tool and equipment rental services. The company primarily serves homeowners; and professional renovators/remodelers, general contractors, maintenance professionals, handymen, property managers, and building service contractors, as well as specialty tradesmen, such as electricians, plumbers, and painters. It sells its products through websites, including homedepot.com; homedepot.ca and homedepot.com.mx; blinds.com, justblinds.com, and americanblinds.com for custom window coverings; thecompanystore.com, an online site for textiles and décor products; hdsupply.com for maintenance, repair, and operations (MRO) products and related services; and The Home Depot stores. The Home Depot, Inc. was incorporated in 1978 and is headquartered in Atlanta, Georgia.
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