Contrasting Duluth (NASDAQ:DLTH) and Talon International (OTCMKTS:TALN)

Duluth (NASDAQ:DLTH) and Talon International (OTCMKTS:TALN) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, institutional ownership, dividends and earnings.

Valuation and Earnings

This table compares Duluth and Talon International”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Duluth	$602.75 million	0.23	-$43.67 million	($1.43)	-2.62
Talon International	$32.11 million	0.24	$220,000.00	N/A	N/A

Talon International has lower revenue, but higher earnings than Duluth.

Volatility & Risk

Duluth has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500. Comparatively, Talon International has a beta of -0.41, meaning that its share price is 141% less volatile than the S&P 500.

Institutional & Insider Ownership

24.4% of Duluth shares are owned by institutional investors. 42.9% of Duluth shares are owned by insiders. Comparatively, 20.3% of Talon International shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Duluth and Talon International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Duluth	0	0	1	1	3.50
Talon International	0	0	0	0	0.00

Duluth presently has a consensus target price of $7.00, indicating a potential upside of 86.67%. Given Duluth’s stronger consensus rating and higher probable upside, analysts plainly believe Duluth is more favorable than Talon International.

Profitability

This table compares Duluth and Talon International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Duluth	-7.99%	-14.31%	-5.30%
Talon International	N/A	N/A	N/A

Summary

Duluth beats Talon International on 8 of the 13 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 Talon International

Talon International, Inc. manufactures and distributes apparel components and accessories to manufacturers of fashion apparel, specialty retailers, and mass merchandisers. The company offers a line of metal, coil, and plastic zippers under the Talon brand name; apparel trim components, including tags, labels, buttons, rivets, leather patches, woven labels, heat transfer seals, tapes, ribbons, printed marketing material, polybasic, packing cartons, and hangers; Flex-It films, adhesive films, overlay films, seam sealing tapes; metal fasteners; stretch waistbands, shirt collars, and inner pocketing panels under the Tekfit brand, as well as packaging and other items; and specialty stretch technology for interlinings. It also provides outsourced trim design, sourcing, and management services, as well as supplies custom branded trim components. The company sells its products through its own sales force in the United States, Hong Kong, China, India, Indonesia, Vietnam, and Bangladesh, as well as through sales representatives in Europe. The company was formerly known as Tag-It Pacific, Inc. and changed its name to Talon International, Inc. in July 2007. Talon International, Inc. was founded in 1980 and is headquartered in Woodland Hills, California.