Analyzing American Eagle Outfitters (NYSE:AEO) and MOGU (NYSE:MOGU)

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

Institutional & Insider Ownership

97.3% of American Eagle Outfitters shares are held by institutional investors. Comparatively, 19.1% of MOGU shares are held by institutional investors. 8.7% of American Eagle Outfitters shares are held by insiders. Comparatively, 19.8% of MOGU shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations and price targets for American Eagle Outfitters and MOGU, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Eagle Outfitters	2	11	1	1	2.07
MOGU	1	0	0	0	1.00

American Eagle Outfitters presently has a consensus target price of $22.45, suggesting a potential downside of 5.70%. Given American Eagle Outfitters’ stronger consensus rating and higher possible upside, equities analysts plainly believe American Eagle Outfitters is more favorable than MOGU.

Risk & Volatility

American Eagle Outfitters has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500. Comparatively, MOGU has a beta of 0.45, suggesting that its share price is 55% less volatile than the S&P 500.

Valuation and Earnings

This table compares American Eagle Outfitters and MOGU”s top-line 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	0.76	$329.38 million	$1.16	20.53
MOGU	$19.46 million	0.86	-$8.62 million	N/A	N/A

American Eagle Outfitters has higher revenue and earnings than MOGU.

Profitability

This table compares American Eagle Outfitters and MOGU’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%
MOGU	N/A	N/A	N/A

Summary

American Eagle Outfitters beats MOGU on 11 of the 13 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 MOGU

MOGU Inc., through its subsidiaries, engages in the online fashion and lifestyle business in the People's Republic of China. The company operates an online platform that primarily offers a range of fashion apparel and other products, including beauty products and accessories provided by third party merchants, as well as personal care, food, and medical beauty products. It also provides online marketing, commission, financing, technology, and other related services to merchants, brand partners/owners, and users; and technology services to insurance companies. The company offers its products through mobile apps, including flagship Mogujie app, mini programs on Weixin, and Weixin pay; websites comprising Mogu.com, Mogujie.com and Meilishuo.com. The company was formerly known as Meili Inc. and changed its name to MOGU Inc. in November 2018. The company was incorporated in 2011 and is headquartered in Hangzhou, the People's Republic of China.