Head to Head Review: SuperGroup (OTCMKTS:SEPGY) vs. American Eagle Outfitters (NYSE:AEO)

American Eagle Outfitters (NYSE:AEO) and SuperGroup (OTCMKTS:SEPGY) are both retail/wholesale companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, institutional ownership, dividends and analyst recommendations.

Insider and Institutional Ownership

97.3% of American Eagle Outfitters shares are held by institutional investors. 8.7% of American Eagle Outfitters shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares American Eagle Outfitters and SuperGroup’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Eagle Outfitters	3.90%	13.82%	5.59%
SuperGroup	N/A	N/A	N/A

Analyst Ratings

This is a summary of current ratings for American Eagle Outfitters and SuperGroup, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Eagle Outfitters	2	11	1	1	2.07
SuperGroup	0	0	0	0	0.00

American Eagle Outfitters currently has a consensus price target of $22.45, indicating a potential downside of 11.80%. Given American Eagle Outfitters’ stronger consensus rating and higher probable upside, research analysts plainly believe American Eagle Outfitters is more favorable than SuperGroup.

Valuation and Earnings

This table compares American Eagle Outfitters and SuperGroup”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Eagle Outfitters	$5.33 billion	0.81	$329.38 million	$1.16	21.95
SuperGroup	$655.98 million	0.01	-$177.94 million	N/A	N/A

American Eagle Outfitters has higher revenue and earnings than SuperGroup.

Summary

American Eagle Outfitters beats SuperGroup on 12 of the 12 factors compared between the two stocks.

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.

About SuperGroup

Superdry plc designs, produces, markets, and sells clothing, footwear, and accessories primarily under the Superdry brand for men and women in the United Kingdom and internationally. It operates through Retail and Wholesale segments. The Company operates through stores, concessions, various Internet sites, multi-brand independents and distributors, franchise, and license stores. It operates 213 owned, and 410 franchised and licensed stores; and 18 international websites. The company was formerly known as SuperGroup Plc and changed its name to Superdry plc in January 2018. Superdry plc was founded in 1985 and is headquartered in Cheltenham, the United Kingdom.