Comparing Culp (NYSE:CULP) and Swatch Group (OTCMKTS:SWGAY)

Swatch Group (OTCMKTS:SWGAY) and Culp (NYSE:CULP) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, earnings, profitability and risk.

Institutional and Insider Ownership

75.1% of Culp shares are owned by institutional investors. 7.4% of Culp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Swatch Group and Culp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Swatch Group	N/A	N/A	N/A
Culp	-5.24%	-12.53%	-5.70%

Analyst Ratings

This is a breakdown of current recommendations for Swatch Group and Culp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Swatch Group	0	4	1	0	2.20
Culp	1	0	0	1	2.50

Valuation and Earnings

This table compares Swatch Group and Culp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Swatch Group	$7.58 billion	3.71	$3.62 million	N/A	N/A
Culp	$203.48 million	0.21	-$19.10 million	($0.81)	-4.16

Swatch Group has higher revenue and earnings than Culp.

Dividends

Swatch Group pays an annual dividend of $0.13 per share and has a dividend yield of 1.1%. Culp pays an annual dividend of $0.46 per share and has a dividend yield of 13.6%. Culp pays out -56.8% of its earnings in the form of a dividend.

Risk and Volatility

Swatch Group has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, Culp has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500.

About Swatch Group

The Swatch Group AG designs, manufactures, and sells finished watches, jewelry, and watch movements and components worldwide. The company operates through Watches & Jewelry and Electronic Systems segments. The Watches & Jewelry segment designs, produces, and commercializes watches and jewelry. The Electronic Systems segment engages in the design, production, and commercialization of electronic components, as well as sports timing activities. It is also involved in the provision of assembly, research and development, administration, polishing, logistics and distribution, and customer services; and hard material products, microelectronics, watch cases and crowns, miniature low-frequency quartz crystals, thin wires, miniature batteries, watch dials, watch hands, bracelets, sports timing technology and equipment, precision parts, and assembly electronic components. In addition, the company engages in retail, communication, real estate, real estate management, finance, reinsurance, and art center businesses. It offers its watch and jewelry products primarily under the Breguet, Harry Winston, Blancpain, Glashütte Original, Jaquet Droz, Léon Hatot, Omega, Longines, Rado, Union Glashütte, Tissot, Balmain, Certina, Mido, Hamilton, Swatch, and Flik Flak brands. The Swatch Group AG was founded in 1983 and is headquartered in Biel/Bienne, Switzerland.

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.