Home Depot (NYSE:HD) vs. Duluth (NASDAQ:DLTH) Financial Survey

Home Depot (NYSE:HD) and Duluth (NASDAQ:DLTH) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, earnings, profitability, institutional ownership and dividends.

Risk and Volatility

Home Depot has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500. Comparatively, Duluth has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500.

Valuation & Earnings

This table compares Home Depot and Duluth”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Home Depot	$164.68 billion	2.08	$14.16 billion	$14.29	24.03
Duluth	$565.18 million	0.27	-$16.39 million	$0.14	29.11

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

Profitability

This table compares Home Depot and Duluth’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Home Depot	8.41%	106.42%	13.76%
Duluth	1.07%	-3.03%	-1.21%

Insider & Institutional Ownership

70.9% of Home Depot shares are held by institutional investors. Comparatively, 24.4% of Duluth shares are held by institutional investors. 0.1% of Home Depot shares are held by insiders. Comparatively, 40.4% of Duluth shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and price targets for Home Depot and Duluth, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Home Depot	1	13	18	1	2.58
Duluth	0	3	0	0	2.00

Home Depot presently has a consensus price target of $375.31, indicating a potential upside of 9.27%. Duluth has a consensus price target of $5.00, indicating a potential upside of 22.70%. Given Duluth’s higher possible upside, analysts clearly believe Duluth is more favorable than Home Depot.

Summary

Home Depot beats Duluth on 11 of the 15 factors compared between the two stocks.

About Home Depot

The Home Depot, Inc. operates as a home improvement retailer in the United States and internationally. It sells various building materials, home improvement products, lawn and garden products, and décor products, as well as facilities maintenance, repair, and operations products. The company also offers installation services for flooring, water heaters, bath, garage doors, cabinets, cabinet makeovers, countertops, sheds, furnaces and central air systems, and windows. In addition, it provides tool and equipment rental services. The company primarily serves homeowners; and professional renovators/remodelers, general contractors, maintenance professionals, handymen, property managers, and building service contractors, as well as specialty tradesmen, such as electricians, plumbers, and painters. It sells its products through websites, including homedepot.com; homedepot.ca and homedepot.com.mx; blinds.com, justblinds.com, and americanblinds.com for custom window coverings; thecompanystore.com, an online site for textiles and décor products; hdsupply.com for maintenance, repair, and operations (MRO) products and related services; and The Home Depot stores. The Home Depot, Inc. was incorporated in 1978 and is headquartered in Atlanta, Georgia.

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.