Columbia Sportswear (NASDAQ: COLM) and Duluth Holdings (NASDAQ:DLTH) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, earnings, institutional ownership and dividends.

Dividends

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.

Risk & Volatility

Columbia Sportswear has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500. Comparatively, Duluth Holdings has a beta of 0.19, suggesting that its stock price is 81% less volatile than the S&P 500.

Earnings and Valuation

This table compares Columbia Sportswear and Duluth Holdings’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Columbia Sportswear $2.41 billion 1.71 $319.52 million $2.72 21.71
Duluth Holdings $391.17 million 1.61 $35.79 million $0.58 33.45

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 & Insider Ownership

39.0% of Columbia Sportswear shares are owned by institutional investors. Comparatively, 33.5% of Duluth Holdings shares are owned by institutional investors. 58.9% of Columbia Sportswear shares are owned by insiders. Comparatively, 70.4% of Duluth Holdings shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Columbia Sportswear and Duluth Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Columbia Sportswear 8.01% 12.31% 9.84%
Duluth Holdings 4.64% 17.05% 11.69%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Columbia Sportswear and Duluth Holdings, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Columbia Sportswear 0 7 6 0 2.46
Duluth Holdings 0 3 5 0 2.63

Columbia Sportswear currently has a consensus price target of $63.45, suggesting a potential upside of 7.48%. Duluth Holdings has a consensus price target of $27.01, suggesting a potential upside of 39.20%. Given Duluth Holdings’ stronger consensus rating and higher possible upside, analysts plainly believe Duluth Holdings is more favorable than Columbia Sportswear.

Summary

Columbia Sportswear beats Duluth Holdings on 9 of the 16 factors compared between the two stocks.

About Columbia Sportswear

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.

About Duluth Holdings

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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