Critical Comparison: Crocs (NASDAQ:CROX) versus Duluth (NASDAQ:DLTH)

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

Institutional & Insider Ownership

24.4% of Duluth shares are owned by institutional investors. Comparatively, 93.4% of Crocs shares are owned by institutional investors. 42.9% of Duluth shares are owned by insiders. Comparatively, 3.0% of Crocs shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Duluth and Crocs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Duluth	-5.03%	-11.30%	-4.28%
Crocs	4.48%	43.14%	15.26%

Earnings & Valuation

This table compares Duluth and Crocs”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Duluth	$626.63 million	0.13	-$43.67 million	($0.87)	-2.59
Crocs	$4.10 billion	1.13	$950.07 million	$3.07	29.14

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

Analyst Recommendations

This is a summary of current recommendations for Duluth and Crocs, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Duluth	1	0	1	2	3.00
Crocs	3	4	7	1	2.40

Duluth currently has a consensus price target of $5.00, indicating a potential upside of 122.22%. Crocs has a consensus price target of $103.42, indicating a potential upside of 15.60%. Given Duluth’s stronger consensus rating and higher possible upside, research analysts plainly believe Duluth is more favorable than Crocs.

Volatility & Risk

Duluth has a beta of 1.69, suggesting that its share price is 69% more volatile than the S&P 500. Comparatively, Crocs has a beta of 1.54, suggesting that its share price is 54% more volatile than the S&P 500.

Summary

Crocs beats Duluth on 10 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 Crocs

Crocs, Inc., together with its subsidiaries, designs, develops, manufactures, markets, distributes, and sells casual lifestyle footwear and accessories for men, women, and children under Crocs and HEYDUDE Brand in the United States and internationally. The company offers various footwear products, including clogs, sandals, slides, flips, wedges, platforms, socks, boots, charms, flip flops, sneakers, and slippers. It sells its products through wholesalers, retail stores, e-commerce sites, third-party marketplaces, and kiosks/store-in-store locations. Crocs, Inc. was founded in 1999 and is headquartered in Broomfield, Colorado.