Iconix Brand Group (NASDAQ: ICON) and Duluth Holdings (NASDAQ:DLTH) are both small-cap consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, risk, valuation, institutional ownership, earnings and profitability.

Analyst Recommendations

This is a breakdown of recent ratings for Iconix Brand Group and Duluth Holdings, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Iconix Brand Group 0 2 2 0 2.50
Duluth Holdings 0 3 5 0 2.63

Iconix Brand Group currently has a consensus price target of $9.13, suggesting a potential upside of 59.53%. Duluth Holdings has a consensus price target of $27.01, suggesting a potential upside of 30.78%. Given Iconix Brand Group’s higher probable upside, research analysts plainly believe Iconix Brand Group is more favorable than Duluth Holdings.

Valuation & Earnings

This table compares Iconix Brand Group and Duluth Holdings’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Iconix Brand Group $352.95 million 0.93 $156.87 million ($4.42) -1.29
Duluth Holdings $411.57 million 1.63 $37.84 million $0.58 35.60

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

Profitability

This table compares Iconix Brand Group and Duluth Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Iconix Brand Group -82.22% 10.38% 3.02%
Duluth Holdings 4.64% 17.05% 11.69%

Risk and Volatility

Iconix Brand Group has a beta of 1.44, meaning that its stock price is 44% more volatile than the S&P 500. Comparatively, Duluth Holdings has a beta of 0.2, meaning that its stock price is 80% less volatile than the S&P 500.

Insider & Institutional Ownership

82.9% of Iconix Brand Group shares are held by institutional investors. Comparatively, 33.5% of Duluth Holdings shares are held by institutional investors. 1.3% of Iconix Brand Group shares are held by company insiders. Comparatively, 70.4% of Duluth Holdings shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Duluth Holdings beats Iconix Brand Group on 10 of the 14 factors compared between the two stocks.

Iconix Brand Group Company Profile

Iconix Brand Group, Inc. is a brand management company. As of December 31, 2016, the Company owned a portfolio of over 30 global consumer brands across women’s, men’s, and home categories. The Company operates through segments: men’s, women’s, home and international. The Company’s brand portfolio includes brands, such as Candie’s, Bongo, Joe Boxer, Rampage, Mudd, London Fog, Mossimo, Ocean Pacific/OP, Danskin/Danskin Now, Rocawear/Roc Nation, Cannon, Royal Velvet, Fieldcrest, Charisma, Starter, Waverly, Ecko Unltd/Mark Ecko Cut & Sew, Zoo York, Umbro, Lee Cooper and Artful Dodger, and interests in Material Girl, Ed Hardy, Truth or Dare, Modern Amusement, Buffalo, Nick Graham Hydraulic and PONY brands. It operates in various geographic regions, including the United States, Japan and Other (which principally represent Latin America and Europe).

Duluth Holdings Company Profile

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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