Home Depot (NYSE:HD – Get Free Report) and Duluth (NASDAQ:DLTH – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, earnings, profitability and institutional ownership.
Volatility and Risk
Home Depot has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500. Comparatively, Duluth has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current recommendations for Home Depot and Duluth, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Home Depot | 1 | 13 | 18 | 1 | 2.58 |
| Duluth | 0 | 3 | 0 | 0 | 2.00 |
Home Depot presently has a consensus target price of $375.90, suggesting a potential upside of 7.99%. Duluth has a consensus target price of $5.00, suggesting a potential upside of 28.87%. Given Duluth’s higher possible upside, analysts clearly believe Duluth is more favorable than Home Depot.
Profitability
This table compares Home Depot and Duluth’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Home Depot | 8.41% | 106.42% | 13.76% |
| Duluth | 1.07% | -3.03% | -1.21% |
Earnings & Valuation
This table compares Home Depot and Duluth”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Home Depot | $164.68 billion | 2.11 | $14.16 billion | $14.29 | 24.36 |
| Duluth | $565.18 million | 0.26 | -$16.39 million | $0.14 | 27.71 |
Home Depot has higher revenue and earnings than Duluth. Home Depot is trading at a lower price-to-earnings ratio than Duluth, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
70.9% of Home Depot shares are owned by institutional investors. Comparatively, 24.4% of Duluth shares are owned by institutional investors. 0.1% of Home Depot shares are owned by company insiders. Comparatively, 40.4% of Duluth shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Summary
Home Depot beats Duluth on 11 of the 15 factors compared between the two stocks.
About Home Depot
The Home Depot, Inc. is a home improvement retailer serving do-it-yourself customers, professional contractors and other businesses. The company sells building materials, tools, hardware, appliances, paint, flooring, and products for home maintenance, repair and renovation, as well as lawn and garden supplies. In addition to its retail stores and online channels, Home Depot offers services such as product delivery, equipment rental and home improvement installation. The company was founded in 1978 and is headquartered in Atlanta, Georgia.
About Duluth
Duluth Holdings Inc. operates Duluth Trading Company, a retailer specializing in clothing, footwear and accessories for work and outdoor activities. Its products include workwear, casual apparel and gear designed for durability and practical use. The company sells products for men and women under labels including Fire Hose, Buck Naked and Alaskan Hardgear. Its merchandise is available through its website, catalogs and retail stores, primarily serving customers in the United States. Duluth Trading traces its origins to 1989, when it began as a direct-to-consumer business.
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