Analyzing Culp (NYSE:CULP) and Lenzing Aktiengesellschaft (OTCMKTS:LNZNF)

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

Dividends

Culp pays an annual dividend of $0.46 per share and has a dividend yield of 10.2%. Lenzing Aktiengesellschaft pays an annual dividend of $1.75 per share and has a dividend yield of 5.2%. Culp pays out -41.8% of its earnings in the form of a dividend. Lenzing Aktiengesellschaft pays out 486.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Culp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Culp and Lenzing Aktiengesellschaft’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Culp	-5.75%	-15.58%	-9.13%
Lenzing Aktiengesellschaft	N/A	N/A	N/A

Valuation & Earnings

This table compares Culp and Lenzing Aktiengesellschaft’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Culp	$237.23 million	0.24	-$31.52 million	($1.10)	-4.11
Lenzing Aktiengesellschaft	N/A	N/A	N/A	$0.36	92.69

Lenzing Aktiengesellschaft has lower revenue, but higher earnings than Culp. Culp is trading at a lower price-to-earnings ratio than Lenzing Aktiengesellschaft, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for Culp and Lenzing Aktiengesellschaft, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Culp	0	0	0	0	N/A
Lenzing Aktiengesellschaft	0	1	0	0	2.00

Insider & Institutional Ownership

75.1% of Culp shares are held by institutional investors. Comparatively, 11.0% of Lenzing Aktiengesellschaft shares are held by institutional investors. 6.6% of Culp shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

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 Lenzing Aktiengesellschaft

Lenzing Aktiengesellschaft, together with its subsidiaries, produces and markets wood-based cellulosic fibers for the textile and nonwoven sectors, and industrial applications. The company operates through Division Fiber, Division Pulp, and Others segments. It offers lyocell and modal fibers for applications in textiles products, such as denim, activewear, and lingerie and underwear; hygiene articles, which include baby wipes, facial sheet masks, and surface cleaning; and protective wear, engineered products, and packaging products under the LENZING, TENCEL, VEOCEL, and LENZING ECOVERO brand names. The company also provides biorefinery products comprising acetic acid biobased, furfural biobased, magnesium lignosulphonate biobased, soda ash, sodium sulphate, and xylose. It also engages in the training and personnel development activities. The company operates in Austria; rest of Europe; Asia; North, Central, and South America; and internationally. Lenzing Aktiengesellschaft was formerly known as Chemiefaser Lenzing AG and changed its name to Lenzing Aktiengesellschaft in 1984. The company was founded in 1892 and is headquartered in Lenzing, Austria.