Comparing Duluth (NASDAQ:DLTH) & Home Depot (NYSE:HD)

Home Depot (NYSE:HD) and Duluth (NASDAQ:DLTH) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, profitability, institutional ownership, analyst recommendations, risk and valuation.

Volatility and Risk

Home Depot has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500. Comparatively, Duluth has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Home Depot and Duluth, as provided by MarketBeat.com.

	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 price target of $375.90, suggesting a potential upside of 7.06%. Duluth has a consensus price target of $5.00, suggesting a potential upside of 31.58%. Given Duluth’s higher probable 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%

Insider & Institutional Ownership

70.9% of Home Depot shares are held by institutional investors. Comparatively, 24.4% of Duluth shares are held by institutional investors. 0.1% of Home Depot shares are held by insiders. Comparatively, 40.4% of Duluth shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Home Depot and Duluth”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Home Depot	$169.18 billion	2.07	$14.16 billion	$14.29	24.57
Duluth	$550.75 million	0.26	-$16.39 million	$0.14	27.14

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.

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., doing business as Duluth Trading Company, is an American lifestyle and workwear retailer. The company designs, markets and sells durable clothing, footwear and accessories for work, outdoor activities and everyday use, with products for men and women. Its merchandise includes work pants, shirts, jackets, base layers, footwear, underwear and other accessories. Duluth is known for functional product features and branded lines such as Fire Hose workwear, Buck Naked underwear and AKHG outdoor apparel.