Comparing Latham Group (NASDAQ:SWIM) and Northann (NYSE:NCL)

Northann (NYSE:NCL) and Latham Group (NASDAQ:SWIM) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, earnings and valuation.

Insider & Institutional Ownership

0.3% of Northann shares are owned by institutional investors. Comparatively, 84.0% of Latham Group shares are owned by institutional investors. 8.6% of Latham Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Northann and Latham Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Northann	N/A	N/A	N/A
Latham Group	0.76%	1.05%	0.49%

Earnings & Valuation

This table compares Northann and Latham Group’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Northann	$13.97 million	0.41	-$7.13 million	N/A	N/A
Latham Group	$566.49 million	0.74	-$2.39 million	$0.03	120.67

Latham Group has higher revenue and earnings than Northann.

Analyst Recommendations

This is a summary of recent ratings for Northann and Latham Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northann	0	0	0	0	N/A
Latham Group	1	1	1	0	2.00

Latham Group has a consensus target price of $3.53, suggesting a potential downside of 2.39%. Given Latham Group’s higher possible upside, analysts clearly believe Latham Group is more favorable than Northann.

Summary

Latham Group beats Northann on 10 of the 10 factors compared between the two stocks.

About Northann

Northann Corp. engages in the manufacture, wholesale, and retail of the 3D printed vinyl flooring panels and other decorative panels in North America, Europe, and internationally. The company offers its products under the Benchwick brand name. Northann Corp. was founded in 2013 and is based in Elk Grove, California.

About Latham Group

Latham Group, Inc. designs, manufactures, and markets in-ground residential swimming pools in North America, Australia, and New Zealand. It offers a portfolio of pools and related products, including in-ground swimming pools that include fiber glass and packaged pools; and pool covers and liners under the Latham, Narellan, CoverStar, Radiant, and GLI brand names. The company was formerly known as Latham Topco, Inc. and changed its name to Latham Group, Inc. in March 2021. Latham Group, Inc. was founded in 1956 and is headquartered in Latham, New York.