Culp (NYSE:CULP – Get Free Report) and Under Armour (NYSE:UAA – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, profitability, dividends, analyst recommendations, earnings, institutional ownership and valuation.
Insider & Institutional Ownership
75.1% of Culp shares are held by institutional investors. Comparatively, 34.6% of Under Armour shares are held by institutional investors. 7.9% of Culp shares are held by insiders. Comparatively, 15.7% of Under Armour shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Risk and Volatility
Culp has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500. Comparatively, Under Armour has a beta of 1.58, suggesting that its stock price is 58% more volatile than the S&P 500.
Earnings & Valuation
This table compares Culp and Under Armour”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Culp | $206.76 million | 0.22 | -$19.10 million | ($0.32) | -11.16 |
| Under Armour | $4.97 billion | 0.44 | -$495.64 million | ($1.11) | -4.60 |
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.
Analyst Ratings
This is a summary of current ratings and target prices 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 | 3 | 8 | 1 | 1 | 2.00 |
Under Armour has a consensus price target of $5.80, indicating a potential upside of 13.39%. Given Under Armour’s stronger consensus rating and higher probable upside, analysts plainly believe Under Armour is more favorable than Culp.
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% |
Summary
Under Armour beats Culp on 10 of the 15 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, engages developing, marketing, and distributing 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 socks; and engages in brand licensing, digital subscription, advertising, and other digital business activities. It primarily offers its products under the UNDER ARMOUR, ARMOUR, HEATGEAR, COLDGEAR, HOVR, UA, PROTECT THIS HOUSE, I WILL, 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 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. The company was incorporated in 1996 and is headquartered in Baltimore, Maryland.
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