Group 1 Automotive (NYSE:GPI) & Duluth (NASDAQ:DLTH) Head-To-Head Analysis

Duluth (NASDAQ:DLTH) and Group 1 Automotive (NYSE:GPI) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, risk, dividends and analyst recommendations.

Earnings & Valuation

This table compares Duluth and Group 1 Automotive”s top-line revenue, earnings per share 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	28.36
Group 1 Automotive	$22.57 billion	0.13	$325.20 million	$24.01	10.52

Group 1 Automotive has higher revenue and earnings than Duluth. Group 1 Automotive is trading at a lower price-to-earnings ratio than Duluth, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and price targets for Duluth and Group 1 Automotive, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Duluth	0	3	0	1	2.50
Group 1 Automotive	2	3	5	0	2.30

Duluth presently has a consensus price target of $5.00, suggesting a potential upside of 25.94%. Group 1 Automotive has a consensus price target of $373.38, suggesting a potential upside of 47.86%. Given Group 1 Automotive’s higher probable upside, analysts plainly believe Group 1 Automotive is more favorable than Duluth.

Profitability

This table compares Duluth and Group 1 Automotive’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%
Group 1 Automotive	1.31%	15.66%	4.43%

Risk and Volatility

Duluth has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500. Comparatively, Group 1 Automotive has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500.

Insider and Institutional Ownership

24.4% of Duluth shares are owned by institutional investors. Comparatively, 99.9% of Group 1 Automotive shares are owned by institutional investors. 40.4% of Duluth shares are owned by company insiders. Comparatively, 2.4% of Group 1 Automotive shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Group 1 Automotive beats Duluth on 9 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 Group 1 Automotive

Group 1 Automotive, Inc., through its subsidiaries, operates in the automotive retail industry in the United States and the United Kingdom. The company sells new and used cars, light trucks, and vehicle parts, as well as service and insurance contracts; arranges related vehicle financing; and offers automotive maintenance and repair services. Group 1 Automotive, Inc. was incorporated in 1995 and is headquartered in Houston, Texas.