Culp (NYSE:CULP – Get Free Report) and Swatch Group (OTCMKTS:SWGAY – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, dividends and analyst recommendations.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Culp and Swatch Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Culp | 1 | 0 | 0 | 1 | 2.50 |
| Swatch Group | 0 | 4 | 1 | 0 | 2.20 |
Earnings & Valuation
This table compares Culp and Swatch Group”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Culp | $203.48 million | 0.22 | -$19.10 million | ($0.81) | -4.37 |
| Swatch Group | $7.58 billion | 3.58 | $3.62 million | N/A | N/A |
Swatch Group has higher revenue and earnings than Culp.
Institutional & Insider Ownership
75.1% of Culp shares are held by institutional investors. 7.4% of Culp shares are held 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.
Dividends
Culp pays an annual dividend of $0.46 per share and has a dividend yield of 13.0%. Swatch Group pays an annual dividend of $0.12 per share and has a dividend yield of 1.0%. Culp pays out -56.8% of its earnings in the form of a dividend.
Profitability
This table compares Culp and Swatch Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Culp | -5.24% | -12.53% | -5.70% |
| Swatch Group | N/A | N/A | N/A |
Risk and Volatility
Culp has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500. Comparatively, Swatch Group has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500.
About Culp
Culp, Inc. manufactures, sources, markets, and sells mattress fabrics, sewn covers, and cut and sewn kits for use in mattresses, foundations, and other bedding products in the United States, North America, the Far East, Asia, and internationally. It operates in two segments, Mattress Fabrics and Upholstery Fabrics. The Mattress Fabrics segment offers woven jacquard, knitted, and converted fabrics for use in the production of bedding products, including mattresses, box springs, foundations, and top of bed components. The Upholstery Fabrics segment provides jacquard woven fabrics, velvets, micro denier suedes, woven dobbies, knitted fabrics, piece-dyed woven products, and polyurethane fabrics for use in the production of residential and commercial upholstered furniture, such as sofas, recliners, loveseats, chairs, sectionals, and sofa-beds, as well as office seating and window treatment products; and installation services for customers in the hospitality and commercial industries. Culp, Inc. was incorporated in 1972 and is headquartered in High Point, North Carolina.
About Swatch Group
The Swatch Group AG designs, manufactures, and sells finished watches, jewelry, and watch movements and components worldwide. The company operates through Watches & Jewelry and Electronic Systems segments. The Watches & Jewelry segment designs, produces, and commercializes watches and jewelry. The Electronic Systems segment engages in the design, production, and commercialization of electronic components, as well as sports timing activities. It is also involved in the provision of assembly, research and development, administration, polishing, logistics and distribution, and customer services; and hard material products, microelectronics, watch cases and crowns, miniature low-frequency quartz crystals, thin wires, miniature batteries, watch dials, watch hands, bracelets, sports timing technology and equipment, precision parts, and assembly electronic components. In addition, the company engages in retail, communication, real estate, real estate management, finance, reinsurance, and art center businesses. It offers its watch and jewelry products primarily under the Breguet, Harry Winston, Blancpain, Glashütte Original, Jaquet Droz, Léon Hatot, Omega, Longines, Rado, Union Glashütte, Tissot, Balmain, Certina, Mido, Hamilton, Swatch, and Flik Flak brands. The Swatch Group AG was founded in 1983 and is headquartered in Biel/Bienne, Switzerland.
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