Urban Outfitters (NASDAQ:URBN – Get Free Report) and Fossil Group (NASDAQ:FOSL – 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 risk, earnings, analyst recommendations, dividends, valuation, profitability and institutional ownership.
Risk & Volatility
Urban Outfitters has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500. Comparatively, Fossil Group has a beta of 1.75, meaning that its stock price is 75% more volatile than the S&P 500.
Insider & Institutional Ownership
77.6% of Urban Outfitters shares are owned by institutional investors. Comparatively, 61.1% of Fossil Group shares are owned by institutional investors. 31.8% of Urban Outfitters shares are owned by insiders. Comparatively, 2.9% of Fossil Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Urban Outfitters | 8.15% | 18.33% | 10.04% |
| Fossil Group | -6.32% | -18.08% | -3.11% |
Analyst Recommendations
This is a breakdown of current recommendations for Urban Outfitters and Fossil Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Urban Outfitters | 1 | 8 | 8 | 0 | 2.41 |
| Fossil Group | 1 | 0 | 1 | 0 | 2.00 |
Urban Outfitters presently has a consensus price target of $86.67, indicating a potential upside of 23.49%. Fossil Group has a consensus price target of $5.00, indicating a potential upside of 31.58%. Given Fossil Group’s higher probable upside, analysts plainly believe Fossil Group is more favorable than Urban Outfitters.
Earnings and Valuation
This table compares Urban Outfitters and Fossil Group”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Urban Outfitters | $5.55 billion | 1.13 | $402.46 million | $5.30 | 13.24 |
| Fossil Group | $1.15 billion | 0.18 | -$102.67 million | ($1.27) | -2.99 |
Urban Outfitters has higher revenue and earnings than Fossil Group. Fossil Group is trading at a lower price-to-earnings ratio than Urban Outfitters, indicating that it is currently the more affordable of the two stocks.
Summary
Urban Outfitters beats Fossil Group on 12 of the 14 factors compared between the two stocks.
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.
About Fossil Group
Fossil Group, Inc., together with its subsidiaries, designs, develops, markets, and distributes consumer fashion accessories in the United States, Europe, Asia, and internationally. The company’s products include traditional watches, smartwatches, jewelry, handbags, small leather goods, belts, and sunglasses. It also manufactures and distributes private label brands, as well as branded products purchased for resell in other branded retail stores. The company offers its products under its proprietary brands, such as FOSSIL, SKAGEN, MICHELE, RELIC, and ZODIAC; and under the licensed brands, including ARMANI EXCHANGE, DIESEL, DKNY, EMPORIO ARMANI, KATE SPADE NEW YORK, MICHAEL KORS, TORY BURCH, and Skechers. The company sells its products through company-owned retail and outlet stores, department and specialty retail stores, mass market stores, e-commerce sites, licensed and franchised FOSSIL retail stores, and retail concessions, as well as sells its products on airlines. The company was formerly known as Fossil, Inc. and changed its name to Fossil Group, Inc. in May 2013. Fossil Group, Inc. was founded in 1984 and is headquartered in Richardson, Texas.
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