Culp (NYSE:CULP – Get Free Report) and Perfect Moment (NASDAQ:PMNT – Get Free Report) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.
Risk and Volatility
Culp has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500. Comparatively, Perfect Moment has a beta of -1.59, meaning that its share price is 259% less volatile than the S&P 500.
Insider & Institutional Ownership
75.1% of Culp shares are owned by institutional investors. Comparatively, 23.0% of Perfect Moment shares are owned by institutional investors. 7.9% of Culp shares are owned by company insiders. Comparatively, 22.2% of Perfect Moment shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Culp | $206.76 million | 0.24 | -$19.10 million | ($0.32) | -11.95 |
| Perfect Moment | $22.93 million | 0.27 | -$8.72 million | ($0.15) | -0.80 |
Perfect Moment has lower revenue, but higher earnings than Culp. Culp is trading at a lower price-to-earnings ratio than Perfect Moment, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Culp and Perfect Moment, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Culp | 1 | 1 | 0 | 0 | 1.50 |
| Perfect Moment | 0 | 0 | 1 | 0 | 3.00 |
Perfect Moment has a consensus target price of $0.40, indicating a potential upside of 233.33%. Given Perfect Moment’s stronger consensus rating and higher possible upside, analysts plainly believe Perfect Moment is more favorable than Culp.
Profitability
This table compares Culp and Perfect Moment’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% |
| Perfect Moment | -67.38% | -513.83% | -119.38% |
Summary
Perfect Moment beats Culp on 8 of the 14 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 Perfect Moment
Perfect Moment Ltd., together with its subsidiaries, owns and operates a fashion brand that offers ski, surf, and activewear collections under the brand name of Perfect Moment. It offers skiwear, outerwear, swimwear and activewear for women, men, and children. The company sells its collections directly to customers through e-commerce and to wholesale accounts, as well as through other sales partnerships. Perfect Moment Ltd. was founded in 1984 and is based in London, the United Kingdom.
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