Crown Crafts (NASDAQ: CRWS) and Culp (NYSE:CULP) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.
Institutional and Insider Ownership
42.3% of Crown Crafts shares are owned by institutional investors. Comparatively, 86.9% of Culp shares are owned by institutional investors. 14.2% of Crown Crafts shares are owned by insiders. Comparatively, 11.4% of Culp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares Crown Crafts and Culp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current recommendations and price targets for Crown Crafts and Culp, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Crown Crafts currently has a consensus price target of $8.00, suggesting a potential upside of 39.13%. Given Crown Crafts’ higher possible upside, equities analysts clearly believe Crown Crafts is more favorable than Culp.
Earnings & Valuation
This table compares Crown Crafts and Culp’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Crown Crafts||$65.98 million||0.88||$5.57 million||$0.55||10.45|
|Culp||$309.54 million||1.22||$22.33 million||$1.99||15.25|
Culp has higher revenue and earnings than Crown Crafts. Crown Crafts is trading at a lower price-to-earnings ratio than Culp, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Crown Crafts has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500. Comparatively, Culp has a beta of 0.16, indicating that its stock price is 84% less volatile than the S&P 500.
Crown Crafts pays an annual dividend of $0.32 per share and has a dividend yield of 5.6%. Culp pays an annual dividend of $0.36 per share and has a dividend yield of 1.2%. Crown Crafts pays out 58.2% of its earnings in the form of a dividend. Culp pays out 18.1% 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 beats Crown Crafts on 9 of the 15 factors compared between the two stocks.
About Crown Crafts
Crown Crafts, Inc., through its subsidiaries, operates in the consumer products industry in the United States and internationally. It provides infant, toddler, and juvenile products, including crib and toddler beddings; blankets and swaddle blankets; nursery and toddler accessories; room décors; reusable and disposable bibs; burp cloths; hooded bath towels and washcloths; reusable and disposable placemats and floor mats; disposable cup labels, toilet seat covers, and changing mats; and other infant, toddler, and juvenile soft goods. The company sells its products primarily to mass merchants, mid-tier retailers, juvenile specialty stores, value channel stores, grocery and drug stores, restaurants, Internet accounts, and wholesale clubs through a network of sales force and independent commissioned sales representatives. Crown Crafts, Inc. was founded in 1957 and is headquartered in Gonzales, Louisiana.
Culp, Inc. manufacturers, sources, markets, and sells mattress fabrics, sewn covers, and cut and sewn kits for use in mattresses, foundations, and other bedding products in North America, the Far East, Asia, and internationally. It operates through 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 bed components. The Upholstery Fabrics segment provides jacquard woven fabrics, velvets, microdenier 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, sofa-beds, chairs, loveseats, recliners, sectionals, office seating, and other institutional settings, as well as for use in fabrics markets. Culp, Inc. was founded in 1972 and is headquartered in High Point, North Carolina.
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