Duluth (NASDAQ:DLTH – Get Free Report) and Children’s Place (NASDAQ:PLCE – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, risk, valuation, institutional ownership, earnings, analyst recommendations and profitability.
Risk & Volatility
Duluth has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500. Comparatively, Children’s Place has a beta of 1.98, meaning that its share price is 98% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Duluth and Children’s Place, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Duluth | 0 | 3 | 0 | 0 | 2.00 |
| Children’s Place | 1 | 2 | 0 | 0 | 1.67 |
Valuation and Earnings
This table compares Duluth and Children’s Place”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Duluth | $565.18 million | 0.27 | -$16.39 million | $0.14 | 28.68 |
| Children’s Place | $1.21 billion | 0.02 | -$88.26 million | ($5.99) | -0.21 |
Duluth has higher earnings, but lower revenue than Children’s Place. Children’s Place is trading at a lower price-to-earnings ratio than Duluth, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Duluth and Children’s Place’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Duluth | 1.07% | -3.03% | -1.21% |
| Children’s Place | -11.82% | N/A | -14.84% |
Institutional and Insider Ownership
24.4% of Duluth shares are owned by institutional investors. 40.4% of Duluth shares are owned by company insiders. Comparatively, 0.9% of Children’s Place shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
Duluth beats Children’s Place on 9 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 Children’s Place
The Children’s Place, Inc. engages in the provision of apparel, footwear, accessories, and other items for children. The firm also designs contracts to manufacture and sell fashionable and value-priced merchandise under the brand names of The Children’s Place, Baby Place, and Gymboree. It operates through The Children’s Place U.S. and The Children’s Place International segments. The Children’s Place U.S. segment refers to the company’s U.S. and Puerto Rico-based stores and revenue from its U.S. based wholesale business. The Children’s Place International segment is involved in the Canadian-based stores, revenue from the company’s Canadian-based wholesale business, as well as revenue from international franchisees. The company was founded by David Pulver and Clinton A. Clark in 1969 and is headquartered in Secaucus, NJ.
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