Swatch Group (OTCMKTS:SWGAY) versus Culp (NYSE:CULP) Financial Survey

Culp (NYSE:CULP) and Swatch Group (OTCMKTS:SWGAY) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, institutional ownership, risk and valuation.

Analyst Ratings

This is a summary of recent recommendations for Culp and Swatch Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Culp	1	0	0	1	2.50
Swatch Group	0	4	1	0	2.20

Valuation and Earnings

This table compares Culp and Swatch Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Culp	$203.48 million	0.22	-$19.10 million	($0.81)	-4.37
Swatch Group	$7.58 billion	3.58	$3.62 million	N/A	N/A

Swatch Group has higher revenue and earnings than Culp.

Insider and Institutional Ownership

75.1% of Culp shares are owned by institutional investors. 7.4% of Culp shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Culp has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500. Comparatively, Swatch Group has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500.

Profitability

This table compares Culp and Swatch Group’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%
Swatch Group	N/A	N/A	N/A

Dividends

Culp pays an annual dividend of $0.46 per share and has a dividend yield of 13.0%. Swatch Group pays an annual dividend of $0.12 per share and has a dividend yield of 1.0%. Culp pays out -56.8% of its earnings in the form of a dividend.

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 Swatch Group

The Swatch Group AG designs, manufactures, and sells finished watches, jewelry, and watch movements and components worldwide. The company operates through Watches & Jewelry and Electronic Systems segments. The Watches & Jewelry segment designs, produces, and commercializes watches and jewelry. The Electronic Systems segment engages in the design, production, and commercialization of electronic components, as well as sports timing activities. It is also involved in the provision of assembly, research and development, administration, polishing, logistics and distribution, and customer services; and hard material products, microelectronics, watch cases and crowns, miniature low-frequency quartz crystals, thin wires, miniature batteries, watch dials, watch hands, bracelets, sports timing technology and equipment, precision parts, and assembly electronic components. In addition, the company engages in retail, communication, real estate, real estate management, finance, reinsurance, and art center businesses. It offers its watch and jewelry products primarily under the Breguet, Harry Winston, Blancpain, Glashütte Original, Jaquet Droz, Léon Hatot, Omega, Longines, Rado, Union Glashütte, Tissot, Balmain, Certina, Mido, Hamilton, Swatch, and Flik Flak brands. The Swatch Group AG was founded in 1983 and is headquartered in Biel/Bienne, Switzerland.