Hanesbrands (HBI) versus Duluth Holdings (NASDAQ:DLTH) Critical Contrast
Hanesbrands (NYSE: HBI) and Duluth Holdings (NASDAQ:DLTH) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, analyst recommendations, risk, institutional ownership, profitability and earnings.
This is a breakdown of recent ratings for Hanesbrands and Duluth Holdings, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Hanesbrands currently has a consensus target price of $27.80, indicating a potential upside of 16.17%. Duluth Holdings has a consensus target price of $27.01, indicating a potential upside of 42.06%. Given Duluth Holdings’ stronger consensus rating and higher possible upside, analysts clearly believe Duluth Holdings is more favorable than Hanesbrands.
This table compares Hanesbrands and Duluth Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Hanesbrands pays an annual dividend of $0.60 per share and has a dividend yield of 2.5%. Duluth Holdings does not pay a dividend. Hanesbrands pays out 39.5% of its earnings in the form of a dividend. Duluth Holdings has increased its dividend for 3 consecutive years.
Risk & Volatility
Hanesbrands has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500. Comparatively, Duluth Holdings has a beta of 0.19, indicating that its share price is 81% less volatile than the S&P 500.
Earnings & Valuation
This table compares Hanesbrands and Duluth Holdings’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Hanesbrands||$6.36 billion||1.37||$1.05 billion||$1.52||15.74|
|Duluth Holdings||$391.17 million||1.58||$35.79 million||$0.56||33.95|
Hanesbrands has higher revenue and earnings than Duluth Holdings. Hanesbrands is trading at a lower price-to-earnings ratio than Duluth Holdings, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
93.7% of Hanesbrands shares are owned by institutional investors. Comparatively, 33.0% of Duluth Holdings shares are owned by institutional investors. 1.1% of Hanesbrands shares are owned by insiders. Comparatively, 70.4% of Duluth Holdings shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Hanesbrands beats Duluth Holdings on 9 of the 17 factors compared between the two stocks.
Hanesbrands Inc. is a marketer of basic innerwear and activewear apparel in the Americas, Europe, Australia and Asia/Pacific under apparel brands, such as Hanes, Champion, Maidenform, DIM, Bali, Playtex, Bonds, JMS/Just My Size, Nur Die/Nur Der, L’eggs, Lovable, Wonderbra, Flexees, Gear for Sports and Berlei. The Company operates through four segments: Innerwear, Activewear, Direct to Consumer and International. The Innerwear segment focuses on core apparel products, such as intimate apparel, men’s underwear, women’s panties, children’s underwear, socks and hosiery. The Company operates in the activewear market through its Champion, Hanes and JMS/Just My Size brands. The Direct to Consumer segment operations include its domestic Company-operated outlet stores and Website operations that sell its branded products directly to consumers in the United States. The International segment includes products that primarily span across the innerwear and activewear segments.
About Duluth Holdings
Duluth Holdings Inc. is a lifestyle brand of men’s and women’s casual wear, workwear and accessories. The Company offers a line of functional products, such as its Longtail T shirts, Buck Naked underwear and Fire Hose work pants. The Company’s segments include direct and retail. The direct segment includes revenues from the Company’s Website and catalogs. The retail segment includes revenues from the Company’s retail and outlet stores. The Company offers its products under the Duluth Trading brand. The Company’s Website, www.duluthtrading.com, serves as a storefront for its product assortment. As of January 29, 2017, the Company operated 14 retail stores and two outlet stores. The Company’s stores range in size from approximately 6,000 to 14,000 selling square feet. The Company’s products also include Ballroom jeans, Duluthflex clothing, Armachillo shirts, Dry on the Fly pants, Armachillo underwear and No-Yank Tank.
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