Guess? (NYSE:GES – Get Free Report) and Duluth (NASDAQ:DLTH – Get Free Report) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, risk, valuation, earnings, analyst recommendations, profitability and dividends.
Institutional & Insider Ownership
61.7% of Guess? shares are owned by institutional investors. Comparatively, 24.4% of Duluth shares are owned by institutional investors. 33.7% of Guess? shares are owned by company insiders. Comparatively, 42.9% of Duluth shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Guess? and Duluth”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Guess? | $3.00 billion | 0.29 | $60.42 million | $0.16 | 104.63 |
| Duluth | $602.75 million | 0.25 | -$43.67 million | ($1.43) | -2.91 |
Guess? has higher revenue and earnings than Duluth. Duluth is trading at a lower price-to-earnings ratio than Guess?, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings and target prices for Guess? and Duluth, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Guess? | 0 | 3 | 0 | 0 | 2.00 |
| Duluth | 0 | 0 | 1 | 1 | 3.50 |
Guess? currently has a consensus price target of $16.75, indicating a potential upside of 0.06%. Duluth has a consensus price target of $7.00, indicating a potential upside of 68.27%. Given Duluth’s stronger consensus rating and higher probable upside, analysts clearly believe Duluth is more favorable than Guess?.
Risk and Volatility
Guess? has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500. Comparatively, Duluth has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500.
Profitability
This table compares Guess? and Duluth’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Guess? | 1.01% | 16.44% | 3.05% |
| Duluth | -7.99% | -14.31% | -5.30% |
Summary
Guess? beats Duluth on 10 of the 15 factors compared between the two stocks.
About Guess?
Guess?, Inc. designs, markets, distributes, and licenses lifestyle collections of apparel and accessories for men, women, and children. It operates through five segments: Americas Retail, Americas Wholesale, Europe, Asia, and Licensing. The company’s clothing collection includes jeans, pants, skirts, dresses, shorts, blouses, shirts, jackets, activewear, knitwear, and intimate apparel. It also grants licenses to design, manufacture, and distribute various products that complement its apparel lines, such as eyewear, watches, handbags, footwear, kids’ and infants’ apparel, outerwear, fragrance, jewelry, and other fashion accessories, as well as to wholesale partners to operate and sell products through licensed retail stores. The company markets its products under the GUESS, GUESS?, GUESS U.S.A., GUESS Jeans, GUESS? and Triangle Design, MARCIANO, Question Mark and Triangle Design, a stylized G and a stylized M, GUESS Kids, Baby GUESS, YES, G by GUESS, GUESS by MARCIANO, and Gc brand names. It sells its products through direct-to-consumer, wholesale, and licensing distribution channels, as well as through its retail websites. Guess?, Inc. was founded in 1981 and is headquartered in Los Angeles, California.
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.
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