Culp (NYSE:CULP – Get Free Report) and Under Armour (NYSE:UA – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, profitability, earnings, dividends and valuation.
Volatility and Risk
Culp has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500. Comparatively, Under Armour has a beta of 1.53, indicating that its stock price is 53% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Culp and Under Armour, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Culp | 1 | 1 | 0 | 0 | 1.50 |
| Under Armour | 2 | 1 | 0 | 0 | 1.33 |
Insider and Institutional Ownership
75.1% of Culp shares are owned by institutional investors. Comparatively, 36.3% of Under Armour shares are owned by institutional investors. 7.9% of Culp shares are owned by insiders. Comparatively, 15.6% of Under Armour shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Culp and Under Armour’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% |
| Under Armour | -9.99% | 4.04% | 1.37% |
Valuation and Earnings
This table compares Culp and Under Armour”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Culp | $206.76 million | 0.24 | -$19.10 million | ($0.32) | -12.16 |
| Under Armour | $4.97 billion | 0.40 | -$495.64 million | ($1.15) | -3.99 |
Culp has higher earnings, but lower revenue than Under Armour. Culp is trading at a lower price-to-earnings ratio than Under Armour, indicating that it is currently the more affordable of the two stocks.
Summary
Under Armour beats Culp on 8 of the 13 factors compared between the two stocks.
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 Under Armour
Under Armour, Inc., together with its subsidiaries, develops, markets, and distributes performance apparel, footwear, and accessories for men, women, and youth. The company provides its apparel in compression, fitted, and loose fit types. It also offers footwear products for running, training, basketball, cleated sports, recovery, and outdoor applications. In addition, the company provides accessories, which include gloves, bags, headwear, and sports masks; and digital subscription, advertising, and other digital business services. It primarily offers its products under the UNDER ARMOUR, HEATGEAR, COLDGEAR, HOVR, UA, PROTECT THIS HOUSE, I WILL, UA Logo, ARMOUR FLEECE, and ARMOUR BRA brands. The company sells its products through wholesale channels, including national and regional sporting goods chains, independent and specialty retailers, department store chains, mono-branded Under Armour retail stores, institutional athletic departments, and leagues and teams, as well as independent distributors; and directly to consumers through a network of 439 Brand and Factory House stores, as well as through e-commerce websites. It operates in the United States, Canada, Europe, the Middle East, Africa, the Asia-Pacific, and Latin America. Under Armour, Inc. was incorporated in 1996 and is headquartered in Baltimore, Maryland.
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