Duluth Holdings (NASDAQ: DLTH) and Vince Holding Corp. (NYSE:VNCE) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, profitability and earnings.

Valuation and Earnings

This table compares Duluth Holdings and Vince Holding Corp.’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Duluth Holdings $391.17 million 1.59 $35.79 million $0.56 34.32
Vince Holding Corp. $258.60 million 0.09 $1.97 million ($3.44) -0.13

Duluth Holdings has higher revenue and earnings than Vince Holding Corp.. Vince Holding 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.

Insider and Institutional Ownership

33.2% of Duluth Holdings shares are owned by institutional investors. Comparatively, 23.7% of Vince Holding Corp. shares are owned by institutional investors. 70.4% of Duluth Holdings shares are owned by insiders. Comparatively, 56.5% of Vince Holding Corp. shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Duluth Holdings 4.71% 17.31% 12.18%
Vince Holding Corp. -65.75% -24.26% -4.82%

Risk & Volatility

Duluth Holdings has a beta of 0.19, suggesting that its stock price is 81% less volatile than the S&P 500. Comparatively, Vince Holding Corp. has a beta of 1.82, suggesting that its stock price is 82% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Duluth Holdings and Vince Holding Corp., as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Duluth Holdings 0 2 5 0 2.71
Vince Holding Corp. 0 2 2 0 2.50

Duluth Holdings presently has a consensus target price of $27.01, suggesting a potential upside of 40.51%. Vince Holding Corp. has a consensus target price of $3.88, suggesting a potential upside of 736.93%. Given Vince Holding Corp.’s higher possible upside, analysts plainly believe Vince Holding Corp. is more favorable than Duluth Holdings.

Summary

Duluth Holdings beats Vince Holding Corp. on 11 of the 13 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.

Vince Holding Corp. Company Profile

Vince Holding Corp. (Vince) is a United States-based company, which offers a range of women’s and men’s apparel, women’s and men’s footwear, and handbags. The Company operates as a fashion brand. The Company operates in two segments: Wholesale and Direct-to-consumer. The Company’s Wholesale segment consists of its operations to distribute products to various department stores and specialty stores in the United States and select international markets. The Company’s Direct-to-consumer segment consists of its operations to distribute products directly to the consumer through its branded specialty retail stores, outlet stores and e-commerce platform. The Company utilizes luxe fabrications and various techniques to create its product assortment. The Company serves its customers through various channels, including wholesale department stores and specialty stores in the United States, as well as through its branded retail locations and its Website.

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