Duluth (NASDAQ:DLTH – Get Free Report) and DICK’S Sporting Goods (NYSE:DKS – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, risk, institutional ownership, earnings and analyst recommendations.
Analyst Ratings
This is a breakdown of current ratings and target prices for Duluth and DICK’S Sporting Goods, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Duluth | 0 | 3 | 0 | 0 | 2.00 |
| DICK’S Sporting Goods | 3 | 9 | 11 | 0 | 2.35 |
Duluth currently has a consensus price target of $5.00, suggesting a potential upside of 26.26%. DICK’S Sporting Goods has a consensus price target of $166.85, suggesting a potential upside of 21.21%. Given Duluth’s higher probable upside, research analysts clearly believe Duluth is more favorable than DICK’S Sporting Goods.
Earnings & 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 | 28.29 |
| DICK’S Sporting Goods | $17.22 billion | 0.71 | $849.24 million | $9.31 | 14.79 |
DICK’S Sporting Goods has higher revenue and earnings than Duluth. DICK’S Sporting Goods is trading at a lower price-to-earnings ratio than Duluth, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
24.4% of Duluth shares are held by institutional investors. Comparatively, 89.8% of DICK’S Sporting Goods shares are held by institutional investors. 40.4% of Duluth shares are held by company insiders. Comparatively, 28.9% of DICK’S Sporting Goods shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares Duluth and DICK’S Sporting Goods’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Duluth | 1.07% | -3.03% | -1.21% |
| DICK’S Sporting Goods | 3.97% | 19.21% | 6.07% |
Risk & Volatility
Duluth has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500. Comparatively, DICK’S Sporting Goods has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500.
Summary
DICK’S Sporting Goods beats Duluth on 10 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 DICK’S Sporting Goods
DICK’s Sporting Goods, Inc. engages in the retailing of an extensive assortment of authentic sports equipment, apparel, footwear, and accessories. It also offers its products both online and through mobile applications. The company was founded by Richard T. Stack in 1948 and is headquartered in Coraopolis, PA.
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