Critical Contrast: Duluth (NASDAQ:DLTH) and Group 1 Automotive (NYSE:GPI)

Duluth (NASDAQ:DLTH – Get Free Report) and Group 1 Automotive (NYSE:GPI – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.

Volatility & Risk

Duluth has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500. Comparatively, Group 1 Automotive has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Duluth and Group 1 Automotive, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Duluth 0 3 0 1 2.50
Group 1 Automotive 2 3 5 0 2.30

Duluth presently has a consensus price target of $5.00, indicating a potential upside of 25.94%. Group 1 Automotive has a consensus price target of $373.38, indicating a potential upside of 47.86%. Given Group 1 Automotive’s higher possible upside, analysts clearly believe Group 1 Automotive is more favorable than Duluth.

Earnings and Valuation

This table compares Duluth and Group 1 Automotive”s gross revenue, earnings per share and 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 28.36
Group 1 Automotive $22.57 billion 0.13 $325.20 million $24.01 10.52

Group 1 Automotive has higher revenue and earnings than Duluth. Group 1 Automotive is trading at a lower price-to-earnings ratio than Duluth, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Duluth and Group 1 Automotive’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Duluth 1.07% -3.03% -1.21%
Group 1 Automotive 1.31% 15.66% 4.43%

Institutional & Insider Ownership

24.4% of Duluth shares are held by institutional investors. Comparatively, 99.9% of Group 1 Automotive shares are held by institutional investors. 40.4% of Duluth shares are held by insiders. Comparatively, 2.4% of Group 1 Automotive shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Group 1 Automotive beats Duluth on 9 of the 15 factors compared between the two stocks.

About Duluth

(Get Free Report)

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 Group 1 Automotive

(Get Free Report)

Group 1 Automotive, Inc., through its subsidiaries, operates in the automotive retail industry in the United States and the United Kingdom. The company sells new and used cars, light trucks, and vehicle parts, as well as service and insurance contracts; arranges related vehicle financing; and offers automotive maintenance and repair services. Group 1 Automotive, Inc. was incorporated in 1995 and is headquartered in Houston, Texas.

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