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

Earnings & Valuation

This table compares Duluth Holdings and V.F. Corporation’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Duluth Holdings $376.12 million 1.40 $21.31 million $0.59 30.59
V.F. Corporation $12.02 billion 2.39 $1.07 billion $2.37 30.63

V.F. Corporation has higher revenue and earnings than Duluth Holdings. Duluth Holdings is trading at a lower price-to-earnings ratio than V.F. Corporation, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Duluth Holdings and V.F. Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Duluth Holdings 4.64% 17.05% 11.69%
V.F. Corporation 8.24% 29.22% 12.65%

Analyst Ratings

This is a summary of recent ratings and price targets for Duluth Holdings and V.F. Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Duluth Holdings 0 4 5 0 2.56
V.F. Corporation 1 15 5 0 2.19

Duluth Holdings currently has a consensus target price of $27.15, suggesting a potential upside of 50.41%. V.F. Corporation has a consensus target price of $65.72, suggesting a potential downside of 9.46%. Given Duluth Holdings’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Duluth Holdings is more favorable than V.F. Corporation.

Dividends

V.F. Corporation pays an annual dividend of $1.68 per share and has a dividend yield of 2.3%. Duluth Holdings does not pay a dividend. V.F. Corporation pays out 70.9% of its earnings in the form of a dividend. V.F. Corporation has increased its dividend for 44 consecutive years.

Institutional and Insider Ownership

34.4% of Duluth Holdings shares are owned by institutional investors. Comparatively, 86.3% of V.F. Corporation shares are owned by institutional investors. 70.4% of Duluth Holdings shares are owned by insiders. Comparatively, 1.6% of V.F. Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

V.F. Corporation beats Duluth Holdings on 10 of the 15 factors compared between the two stocks.

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.

About V.F. Corporation

V.F. Corporation (VF) is engaged in the design, production, procurement, marketing and distribution of branded lifestyle apparel, footwear and related products. The Company’s segments include Outdoor & Action Sports, Jeanswear, Imagewear and Sportswear. Its Outdoor & Action Sports Coalition is a group of authentic outdoor and activity-based lifestyle brands. Its product offerings include apparel, footwear, equipment, backpacks, luggage and accessories. Its Imagewear coalition consists of the Image business. Its Wrangler brand offers denim, apparel, accessories and footwear through mass merchants, specialty stores and department stores in the United States, VF-operated stores and online at www.wrangler.com. The Sportswear coalition consists of the Nautica and Kipling brand businesses in North America (the Kipling brand outside of North America is managed by the Outdoor & Action Sports coalition).

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