Kontoor Brands (NYSE:KTB) and Duluth (NASDAQ:DLTH) Financial Contrast

Kontoor Brands (NYSE:KTB) and Duluth (NASDAQ:DLTH) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.

Valuation & Earnings

This table compares Kontoor Brands and Duluth”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kontoor Brands	$2.61 billion	1.17	$245.80 million	$4.08	13.48
Duluth	$626.63 million	0.13	-$43.67 million	($1.58)	-1.34

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

Profitability

This table compares Kontoor Brands and Duluth’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kontoor Brands	8.82%	71.33%	16.78%
Duluth	-8.68%	-14.31%	-5.48%

Volatility and Risk

Kontoor Brands has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500. Comparatively, Duluth has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Kontoor Brands and Duluth, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kontoor Brands	0	1	5	0	2.83
Duluth	0	1	0	0	2.00

Kontoor Brands presently has a consensus price target of $87.50, suggesting a potential upside of 59.09%. Duluth has a consensus price target of $2.75, suggesting a potential upside of 30.33%. Given Kontoor Brands’ stronger consensus rating and higher probable upside, equities analysts plainly believe Kontoor Brands is more favorable than Duluth.

Insider and Institutional Ownership

93.1% of Kontoor Brands shares are held by institutional investors. Comparatively, 24.4% of Duluth shares are held by institutional investors. 1.7% of Kontoor Brands shares are held by insiders. Comparatively, 42.9% of Duluth shares are held by 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.

Summary

Kontoor Brands beats Duluth on 12 of the 14 factors compared between the two stocks.

About Kontoor Brands

Kontoor Brands, Inc., a lifestyle apparel company, designs, produces, procures, markets, distributes, and licenses denim, apparel, footwear, and accessories, primarily under the Wrangler and Lee brands. The company operates through two segments: Wrangler and Lee. It licenses and sells apparel under the Rock & Republic brand name. The company sells its products primarily through mass merchants, specialty stores, mid-tier and traditional department stores, company-operated stores, and online. It operates in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific regions. Kontoor Brands, Inc. was incorporated in 2018 and is headquartered in Greensboro, North Carolina.

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.