Financial Comparison: Duluth Holdings (DLTH) versus PVH Corp. (PVH)

Duluth Holdings (NASDAQ: DLTH) and PVH Corp. (NYSE:PVH) are both cyclical consumer goods & services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, profitabiliy, risk and institutional ownership.

Insider and Institutional Ownership

33.0% of Duluth Holdings shares are held by institutional investors. Comparatively, 97.4% of PVH Corp. shares are held by institutional investors. 70.4% of Duluth Holdings shares are held by insiders. Comparatively, 1.5% of PVH Corp. shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Duluth Holdings and PVH Corp.’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Duluth Holdings $391.17 million 1.58 $35.79 million $0.56 34.09
PVH Corp. $8.27 billion 1.17 $1.12 billion $4.82 25.75

PVH Corp. has higher revenue and earnings than Duluth Holdings. PVH 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Duluth Holdings 0.50% 1.28% 1.05%
PVH Corp. 4.69% 11.57% 5.04%

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, PVH Corp. has a beta of 0.51, meaning that its share price is 49% less volatile than the S&P 500.

Dividends

PVH Corp. pays an annual dividend of $0.15 per share and has a dividend yield of 0.1%. Duluth Holdings does not pay a dividend. PVH Corp. pays out 3.1% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Duluth Holdings and PVH Corp., as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Duluth Holdings 0 2 5 0 2.71
PVH Corp. 0 3 15 0 2.83

Duluth Holdings currently has a consensus target price of $27.01, indicating a potential upside of 41.47%. PVH Corp. has a consensus target price of $125.82, indicating a potential upside of 1.38%. Given Duluth Holdings’ higher probable upside, equities analysts plainly believe Duluth Holdings is more favorable than PVH Corp..

Summary

PVH Corp. beats Duluth Holdings on 11 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.

PVH Corp. Company Profile

PVH Corp. is an apparel company. The Company operates through three segments: Calvin Klein, which consists of the Calvin Klein North America and Calvin Klein International segments; Tommy Hilfiger, which consists of the Tommy Hilfiger North America and Tommy Hilfiger International segments, and Heritage Brands, which consists of the Heritage Brands Wholesale and Heritage Brands Retail segments. The Company’s brand portfolio consists of various brand names, including Calvin Klein, Tommy Hilfiger, Van Heusen, IZOD, ARROW, Warner’s, Olga and Eagle, which are owned, and Speedo, Geoffrey Beene, Kenneth Cole New York, Kenneth Cole Reaction, Sean John, MICHAEL Michael Kors, Michael Kors Collection and Chaps, which are licensed, as well as various other licensed and private label brands. The Company designs and markets dress shirts, neckwear, sportswear, jeanswear, intimate apparel, swim products and handbags, footwear and other related products.

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