Duluth (NASDAQ:DLTH) & Superior Group of Companies (NASDAQ:SGC) Critical Comparison

Duluth (NASDAQ:DLTH) and Superior Group of Companies (NASDAQ:SGC) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, institutional ownership, earnings and risk.

Volatility & Risk

Duluth has a beta of 1.69, suggesting that its stock price is 69% more volatile than the S&P 500. Comparatively, Superior Group of Companies has a beta of 1.49, suggesting that its stock price is 49% more volatile than the S&P 500.

Profitability

This table compares Duluth and Superior Group of Companies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Duluth	-7.99%	-14.31%	-5.30%
Superior Group of Companies	1.00%	2.89%	1.35%

Earnings & Valuation

This table compares Duluth and Superior Group of Companies”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Duluth	$626.63 million	0.17	-$43.67 million	($1.43)	-2.03
Superior Group of Companies	$565.02 million	0.28	$12.00 million	$0.36	27.36

Superior Group of Companies has lower revenue, but higher earnings than Duluth. Duluth is trading at a lower price-to-earnings ratio than Superior Group of Companies, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

24.4% of Duluth shares are owned by institutional investors. Comparatively, 33.8% of Superior Group of Companies shares are owned by institutional investors. 42.9% of Duluth shares are owned by company insiders. Comparatively, 26.7% of Superior Group of Companies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations for Duluth and Superior Group of Companies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Duluth	1	0	1	2	3.00
Superior Group of Companies	0	1	3	0	2.75

Duluth presently has a consensus target price of $7.00, suggesting a potential upside of 140.96%. Superior Group of Companies has a consensus target price of $17.33, suggesting a potential upside of 75.97%. Given Duluth’s stronger consensus rating and higher possible upside, analysts plainly believe Duluth is more favorable than Superior Group of Companies.

Summary

Superior Group of Companies beats Duluth on 9 of the 15 factors compared between the two stocks.

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.

About Superior Group of Companies

Superior Group of Companies, Inc. manufactures and sells apparel and accessories in the United States and internationally. It operates through three segments: Branded Products, Healthcare Apparel, and Contact Centers. The Branded Products segment produces and sells customized merchandising solutions, promotional products, and branded uniform to chain retailer, food service, entertainment, technology, transportation, and other industries under BAMKO and HPI brands. The Healthcare Apparel segment manufactures and sells healthcare apparel, such as scrubs, lab coats, protective apparel, and patient gowns under the Fashion Seal Healthcare, CID Resources and Wink, and Carhartt brand names. This segment sells healthcare service apparel to healthcare laundries, dealers, distributors, and physical and e-commerce retailers. The Contact Centers segment offers outsourced, nearshore business process outsourcing, and contact and call-center support services. The company was formerly known as Superior Uniform Group, Inc. and changed its name to Superior Group of Companies, Inc. in May 2018. Superior Group of Companies, Inc. was founded in 1920 and is headquartered in St. Petersburg, Florida.