Head-To-Head Contrast: DICK’S Sporting Goods (NYSE:DKS) versus Duluth (NASDAQ:DLTH)

DICK’S Sporting Goods (NYSE:DKS) and Duluth (NASDAQ:DLTH) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, dividends, analyst recommendations, earnings, institutional ownership, risk and valuation.

Risk & Volatility

DICK’S Sporting Goods has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500. Comparatively, Duluth has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500.

Profitability

This table compares DICK’S Sporting Goods and Duluth’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DICK’S Sporting Goods	3.97%	19.21%	6.07%
Duluth	1.07%	-3.03%	-1.21%

Valuation & Earnings

This table compares DICK’S Sporting Goods and Duluth”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DICK’S Sporting Goods	$17.22 billion	0.71	$849.24 million	$9.31	14.79
Duluth	$565.18 million	0.27	-$16.39 million	$0.14	28.29

DICK’S Sporting Goods has higher revenue and earnings than Duluth. DICK’S Sporting Goods is trading at a lower price-to-earnings ratio than Duluth, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and price targets for DICK’S Sporting Goods and Duluth, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DICK’S Sporting Goods	3	9	11	0	2.35
Duluth	0	3	0	0	2.00

DICK’S Sporting Goods currently has a consensus price target of $166.85, suggesting a potential upside of 21.21%. Duluth has a consensus price target of $5.00, suggesting a potential upside of 26.26%. Given Duluth’s higher probable upside, analysts plainly believe Duluth is more favorable than DICK’S Sporting Goods.

Insider & Institutional Ownership

89.8% of DICK’S Sporting Goods shares are owned by institutional investors. Comparatively, 24.4% of Duluth shares are owned by institutional investors. 28.9% of DICK’S Sporting Goods shares are owned by company insiders. Comparatively, 40.4% of Duluth shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

DICK’S Sporting Goods beats Duluth on 10 of the 13 factors compared between the two stocks.

About DICK’S Sporting Goods

DICK’s Sporting Goods, Inc. engages in the retailing of an extensive assortment of authentic sports equipment, apparel, footwear, and accessories. It also offers its products both online and through mobile applications. The company was founded by Richard T. Stack in 1948 and is headquartered in Coraopolis, PA.

About Duluth

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.