Differential Brands Group (NASDAQ: DFBG) and Lakeland Industries (NASDAQ:LAKE) are both small-cap consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, analyst recommendations, earnings and risk.
This is a summary of recent ratings and recommmendations for Differential Brands Group and Lakeland Industries, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Differential Brands Group||0||0||3||1||3.25|
Differential Brands Group currently has a consensus target price of $5.00, suggesting a potential upside of 346.43%. Lakeland Industries has a consensus target price of $18.00, suggesting a potential upside of 37.40%. Given Differential Brands Group’s stronger consensus rating and higher probable upside, research analysts plainly believe Differential Brands Group is more favorable than Lakeland Industries.
Institutional and Insider Ownership
2.0% of Differential Brands Group shares are owned by institutional investors. Comparatively, 54.9% of Lakeland Industries shares are owned by institutional investors. 62.5% of Differential Brands Group shares are owned by insiders. Comparatively, 8.6% of Lakeland Industries shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Differential Brands Group and Lakeland Industries’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Differential Brands Group||$149.27 million||0.10||-$17.81 million||($0.86)||-1.30|
|Lakeland Industries||$86.18 million||1.23||$3.89 million||$0.84||15.60|
Lakeland Industries has lower revenue, but higher earnings than Differential Brands Group. Differential Brands Group is trading at a lower price-to-earnings ratio than Lakeland Industries, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Differential Brands Group has a beta of -1.8, meaning that its stock price is 280% less volatile than the S&P 500. Comparatively, Lakeland Industries has a beta of -0.18, meaning that its stock price is 118% less volatile than the S&P 500.
This table compares Differential Brands Group and Lakeland Industries’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Differential Brands Group||-7.14%||-27.60%||-6.74%|
Lakeland Industries beats Differential Brands Group on 9 of the 15 factors compared between the two stocks.
About Differential Brands Group
Differential Brands Group Inc., formerly Joe’s Jeans Inc., is engaged in the design, development and marketing of apparel products, which include denim jeans, related casual wear and accessories. The Company offers its products under various brands, such as Hudson, Robert Graham and SWIMS. Its segments are Wholesale and Retail. Its Wholesale segment consists of sales of Hudson products to retailers, specialty stores and international distributors. Its Retail segment consists of sales of its products to consumers through its retail Internet sites for Hudson products. The Hudson product line includes women’s, men’s and children’s denim jeans, pants and other bottoms. The Robert Graham product line includes men’s sport shirts, pants, sweaters, knits, t-shirts, sportcoats, outerwear and swimwear. Through SWIMS brand, it distributes a range of footwear, swimwear, outerwear, ready-to-wear and accessories across the world through department stores, independent specialty and luxury resorts.
About Lakeland Industries
Lakeland Industries, Inc. (Lakeland) manufactures and sells a line of safety garments and accessories for the industrial and public protective clothing market. The Company’s product categories include limited use/disposable protective clothing; high-end chemical protective suits; firefighting, flame resistant personal protective equipment (FR PPE) and heat protective apparel; reusable woven garments; high visibility clothing, and glove and sleeves. The Company’s products are sold by its in-house customer service group, its regional sales managers and independent sales representatives to a network of over 1,200 North American safety and mill supply distributors. These distributors in turn supply end user industrial customers, such as integrated oil, chemical/petrochemical, utilities, automobile, steel, glass, construction, smelting, munition plants, janitorial, pharmaceutical, mortuaries and high technology electronics manufacturers, as well as scientific and medical laboratories.
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