Lulu’s Fashion Lounge (NASDAQ:LVLU – Get Free Report) and American Eagle Outfitters (NYSE:AEO – Get Free Report) are both retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, risk, valuation, earnings, analyst recommendations, profitability and dividends.
Institutional & Insider Ownership
73.8% of Lulu’s Fashion Lounge shares are owned by institutional investors. Comparatively, 97.3% of American Eagle Outfitters shares are owned by institutional investors. 6.8% of Lulu’s Fashion Lounge shares are owned by company insiders. Comparatively, 8.7% of American Eagle Outfitters shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Analyst Ratings
This is a summary of current ratings and target prices for Lulu’s Fashion Lounge and American Eagle Outfitters, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lulu’s Fashion Lounge | 1 | 1 | 0 | 0 | 1.50 |
| American Eagle Outfitters | 3 | 9 | 1 | 1 | 2.00 |
Profitability
This table compares Lulu’s Fashion Lounge and American Eagle Outfitters’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Lulu’s Fashion Lounge | -15.83% | -251.91% | -15.75% |
| American Eagle Outfitters | 3.74% | 13.67% | 5.80% |
Valuation & Earnings
This table compares Lulu’s Fashion Lounge and American Eagle Outfitters”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Lulu’s Fashion Lounge | $315.89 million | 0.05 | -$55.29 million | ($16.16) | -0.34 |
| American Eagle Outfitters | $5.27 billion | 0.61 | $329.38 million | $1.04 | 18.37 |
American Eagle Outfitters has higher revenue and earnings than Lulu’s Fashion Lounge. Lulu’s Fashion Lounge is trading at a lower price-to-earnings ratio than American Eagle Outfitters, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Lulu’s Fashion Lounge has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500. Comparatively, American Eagle Outfitters has a beta of 1.58, suggesting that its share price is 58% more volatile than the S&P 500.
Summary
American Eagle Outfitters beats Lulu’s Fashion Lounge on 14 of the 15 factors compared between the two stocks.
About Lulu’s Fashion Lounge
Lulu’s Fashion Lounge Holdings, Inc. engages in providing an online website for clothing. It offers retailing of women’s clothing, shoes, and accessories. The company was founded in 1996 and is headquartered in Chico, CA.
About American Eagle Outfitters
American Eagle Outfitters, Inc. operates as a multi-brand specialty retailer in the United States and internationally. The company provides jeans, apparel and accessories, and personal care products for women and men under the American Eagle brand; and intimates, apparel, activewear, and swim collections under the Aerie and OFFLINE by Aerie brands. It also offers menswear products under the Todd Snyder New York brand; and fashion clothing and accessories under the Unsubscribed brand. The company sells its products through own and licensed retail stores; concession-based shops-within-shops; and digital channels, such as www.ae.com, www.aerie.com, www.toddsnyder.com, and www.unsubscribed.com. American Eagle Outfitters, Inc. was founded in 1977 and is headquartered in Pittsburgh, Pennsylvania.
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