G-III Apparel Group (NASDAQ:GIII) versus Culp (NYSE:CULP) Head-To-Head Survey

Culp (NYSE:CULP) and G-III Apparel Group (NASDAQ:GIII) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, risk, earnings, dividends and valuation.

Dividends

Culp pays an annual dividend of $0.46 per share and has a dividend yield of 12.0%. G-III Apparel Group pays an annual dividend of $0.40 per share and has a dividend yield of 1.4%. Culp pays out -143.8% of its earnings in the form of a dividend. G-III Apparel Group pays out 13.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Culp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Culp and G-III Apparel 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%
G-III Apparel Group	4.75%	5.53%	3.71%

Earnings and Valuation

This table compares Culp and G-III Apparel Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Culp	$206.76 million	0.24	-$19.10 million	($0.32)	-11.94
G-III Apparel Group	$2.96 billion	0.41	$67.35 million	$3.04	9.34

G-III Apparel Group has higher revenue and earnings than Culp. Culp is trading at a lower price-to-earnings ratio than G-III Apparel Group, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

75.1% of Culp shares are owned by institutional investors. Comparatively, 92.1% of G-III Apparel Group shares are owned by institutional investors. 7.9% of Culp shares are owned by insiders. Comparatively, 15.0% of G-III Apparel Group 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 & Risk

Culp has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500. Comparatively, G-III Apparel Group has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Culp and G-III Apparel Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Culp	1	1	0	0	1.50
G-III Apparel Group	0	3	3	0	2.50

G-III Apparel Group has a consensus target price of $34.75, indicating a potential upside of 22.36%. Given G-III Apparel Group’s stronger consensus rating and higher possible upside, analysts clearly believe G-III Apparel Group is more favorable than Culp.

Summary

G-III Apparel Group beats Culp on 14 of the 16 factors compared between the two stocks.

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 G-III Apparel Group

G-III Apparel Group, Ltd. designs, sources, and markets women's and men's apparel in the United States and internationally. The company operates through two segments, Wholesale Operations and Retail Operations. Its products include outerwear, dresses, sportswear, swimwear, women's suits, and women's performance wear; and women's handbags, footwear, small leather goods, cold weather accessories, and luggage. The company markets apparel and other products under the proprietary brands, including DKNY, Donna Karan, Karl Lagerfeld, Karl Lagerfeld Paris, Vilebrequin, G.H. Bass, Eliza J, Jessica Howard, Andrew Marc, Marc New York, Wilsons Leather, Sonia Rykiel, and G-III Sports by Carl Banks; and licensed brands, such as Calvin Klein, Tommy Hilfiger, Levi's, Guess?, Kenneth Cole, Cole Haan, Vince Camuto, Margaritaville, and Dockers. It has licenses with the National Football League, National Basketball Association, Major League Baseball, and National Hockey League, as well as approximately 150 U.S. colleges and universities. The company offers its products to department, specialty, and mass merchant retail stores. It also sells its products online. G-III Apparel Group, Ltd. was founded in 1956 and is based in New York, New York.