K Swiss (NASDAQ: KSWS) and Duluth (NASDAQ:DLTH) are both small-cap cyclical consumer goods & services companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, earnings, risk, valuation, analyst recommendations and institutional ownership.
This table compares K Swiss and Duluth’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares K Swiss and Duluth’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Duluth||$376.12 million||1.45||$21.31 million||$0.54||34.70|
Duluth has higher revenue and earnings than K Swiss. K Swiss is trading at a lower price-to-earnings ratio than Duluth, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and price targets for K Swiss and Duluth, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Duluth has a consensus price target of $22.50, indicating a potential upside of 20.06%. Given Duluth’s higher possible upside, analysts clearly believe Duluth is more favorable than K Swiss.
Volatility & Risk
K Swiss has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500. Comparatively, Duluth has a beta of 0.13, meaning that its stock price is 87% less volatile than the S&P 500.
Institutional and Insider Ownership
43.3% of Duluth shares are owned by institutional investors. 70.4% of Duluth shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Duluth beats K Swiss on 10 of the 11 factors compared between the two stocks.
K Swiss Company Profile
K-Swiss Inc. (K-Swiss) is engaged in designing, developing and marketing an array of footwear, apparel and accessories for athletic, sports and fitness activities and casual wear under the K-Swiss brand. The Company also designs, develops and markets footwear for adventurers for all terrains under the Palladium brand. The Company sells products primarily to footwear stores, pro shops, sporting goods stores and department stores. Internationally, as of December 31, 2011, K-Swiss had the right to market its products in 124 countries through eight international subsidiaries and 29 distributors. During the year ended December 31, 2011, approximately 60%, 21%, 17% and 2% of the Company’s footwear products were manufactured in China, Thailand, Vietnam and Indonesia, respectively. In May 2013, E.Land World Ltd. completed the acquisition of K Swiss Inc in a merger transaction.
Duluth 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.
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