a.k.a. Brands (NYSE:AKA – Get Free Report) and Urban Outfitters (NASDAQ:URBN – Get Free Report) are both retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, institutional ownership, valuation, analyst recommendations and risk.
Earnings & Valuation
This table compares a.k.a. Brands and Urban Outfitters”s top-line revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
a.k.a. Brands | $574.70 million | 0.18 | -$25.99 million | ($2.51) | -3.74 |
Urban Outfitters | $5.55 billion | 1.10 | $402.46 million | $5.12 | 13.35 |
Profitability
This table compares a.k.a. Brands and Urban Outfitters’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
a.k.a. Brands | -4.48% | -21.06% | -6.33% |
Urban Outfitters | 8.15% | 18.43% | 9.98% |
Insider & Institutional Ownership
55.4% of a.k.a. Brands shares are owned by institutional investors. Comparatively, 77.6% of Urban Outfitters shares are owned by institutional investors. 17.6% of a.k.a. Brands shares are owned by company insiders. Comparatively, 31.8% of Urban Outfitters shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Volatility & Risk
a.k.a. Brands has a beta of 1.6, suggesting that its stock price is 60% more volatile than the S&P 500. Comparatively, Urban Outfitters has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and recommmendations for a.k.a. Brands and Urban Outfitters, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
a.k.a. Brands | 1 | 1 | 1 | 0 | 2.00 |
Urban Outfitters | 1 | 6 | 6 | 2 | 2.60 |
a.k.a. Brands currently has a consensus target price of $20.00, suggesting a potential upside of 112.88%. Urban Outfitters has a consensus target price of $81.91, suggesting a potential upside of 19.86%. Given a.k.a. Brands’ higher probable upside, analysts clearly believe a.k.a. Brands is more favorable than Urban Outfitters.
Summary
Urban Outfitters beats a.k.a. Brands on 13 of the 15 factors compared between the two stocks.
About a.k.a. Brands
a.k.a. Brands Holding Corp. operates a portfolio of online fashion brands in the United States, Australia, and internationally. The company offers streetwear apparel, dresses, tops, bottoms, shoes, headwear, and accessories through its online stores under the Princess Polly, Petal & Pup, Culture Kings, and mnml brands. It also operates physical stores under the Culture Kings brand. The company was founded in 2018 and is headquartered in San Francisco, California.
About Urban Outfitters
Urban Outfitters, Inc. engages in the retail and wholesale of general consumer products. The company operates through three segments: Retail, Wholesale, and Nuuly. It operates Urban Outfitters stores, which offer women's and men's fashion apparel, activewear, intimates, footwear, accessories, home goods, electronics, and beauty products for young adults aged 18 to 28; and Anthropologie stores that provide women's apparel, accessories, intimates, shoes, and home furnishings, as well as gifts, decorative items, and beauty and wellness products for women aged 28 to 45. The company also operates Terrain stores that provide lifestyle home products, garden and outdoor living products, antiques, live plants, flowers, wellness products, and accessories. In addition, it operates Free People retail stores, which offer casual women's apparel, intimates, activewear, shoes, accessories, home products, gifts, and beauty and wellness products for young women aged 25 to 30; and restaurants, as well as women's apparel subscription rental service under the Nuuly brand. Further, the company is involved in the wholesale of young women's contemporary casual apparel, intimates, activewear, and shoes under the Free People brand; and apparel collections under the Urban Outfitters brand. The company serves its customers directly through retail stores, websites, mobile applications, catalogs and customer contact centers, franchisee-owned stores, and department and specialty stores, as well as social media and third-party digital platforms. Urban Outfitters, Inc. was founded in 1970 and is based in Philadelphia, Pennsylvania.
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