Duluth (NASDAQ:DLTH) and Talon International (OTCMKTS:TALN) Critical Comparison

Talon International (OTCMKTS:TALN) and Duluth (NASDAQ:DLTH) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their risk, institutional ownership, earnings, dividends, valuation, analyst recommendations and profitability.

Profitability

This table compares Talon International and Duluth’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Talon International	N/A	N/A	N/A
Duluth	-7.99%	-14.31%	-5.30%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Talon International and Duluth, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Talon International	0	0	0	0	0.00
Duluth	0	0	1	1	3.50

Duluth has a consensus target price of $7.00, suggesting a potential upside of 94.44%. Given Duluth’s stronger consensus rating and higher probable upside, analysts plainly believe Duluth is more favorable than Talon International.

Volatility & Risk

Talon International has a beta of -0.41, meaning that its share price is 141% less volatile than the S&P 500. Comparatively, Duluth has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500.

Earnings & Valuation

This table compares Talon International and Duluth”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Talon International	$32.11 million	0.15	$220,000.00	N/A	N/A
Duluth	$626.63 million	0.21	-$43.67 million	($1.43)	-2.52

Talon International has higher earnings, but lower revenue than Duluth.

Institutional and Insider Ownership

24.4% of Duluth shares are owned by institutional investors. 20.3% of Talon International shares are owned by company insiders. Comparatively, 42.9% of Duluth shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Duluth beats Talon International on 9 of the 13 factors compared between the two stocks.

About Talon International

Talon International, Inc. manufactures and distributes apparel components and accessories to manufacturers of fashion apparel, specialty retailers, and mass merchandisers. The company offers a line of metal, coil, and plastic zippers under the Talon brand name; apparel trim components, including tags, labels, buttons, rivets, leather patches, woven labels, heat transfer seals, tapes, ribbons, printed marketing material, polybasic, packing cartons, and hangers; Flex-It films, adhesive films, overlay films, seam sealing tapes; metal fasteners; stretch waistbands, shirt collars, and inner pocketing panels under the Tekfit brand, as well as packaging and other items; and specialty stretch technology for interlinings. It also provides outsourced trim design, sourcing, and management services, as well as supplies custom branded trim components. The company sells its products through its own sales force in the United States, Hong Kong, China, India, Indonesia, Vietnam, and Bangladesh, as well as through sales representatives in Europe. The company was formerly known as Tag-It Pacific, Inc. and changed its name to Talon International, Inc. in July 2007. Talon International, Inc. was founded in 1980 and is headquartered in Woodland Hills, California.

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.