Reviewing Urban Outfitters (URBN) & Its Rivals

Urban Outfitters (NASDAQ: URBN) is one of 37 public companies in the “Apparel & Accessories Retailers” industry, but how does it weigh in compared to its rivals? We will compare Urban Outfitters to similar companies based on the strength of its earnings, dividends, analyst recommendations, profitability, institutional ownership, risk and valuation.

Valuation and Earnings

This table compares Urban Outfitters and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Urban Outfitters $3.53 billion $407.95 million 16.79
Urban Outfitters Competitors $3.37 billion $449.09 million 21.99

Urban Outfitters has higher revenue, but lower earnings than its rivals. Urban Outfitters is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

Urban Outfitters has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500. Comparatively, Urban Outfitters’ rivals have a beta of 0.78, suggesting that their average share price is 22% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Urban Outfitters and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Urban Outfitters 3 16 6 0 2.12
Urban Outfitters Competitors 515 2979 2905 84 2.39

Urban Outfitters currently has a consensus target price of $22.00, suggesting a potential downside of 12.07%. As a group, “Apparel & Accessories Retailers” companies have a potential upside of 5.14%. Given Urban Outfitters’ rivals stronger consensus rating and higher possible upside, analysts plainly believe Urban Outfitters has less favorable growth aspects than its rivals.

Insider & Institutional Ownership

87.9% of Urban Outfitters shares are owned by institutional investors. Comparatively, 75.2% of shares of all “Apparel & Accessories Retailers” companies are owned by institutional investors. 26.3% of Urban Outfitters shares are owned by insiders. Comparatively, 16.5% of shares of all “Apparel & Accessories Retailers” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Urban Outfitters and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Urban Outfitters 4.92% 13.61% 9.27%
Urban Outfitters Competitors 2.27% 4.94% 5.28%

Summary

Urban Outfitters rivals beat Urban Outfitters on 7 of the 13 factors compared.

About Urban Outfitters

Urban Outfitters, Inc. is a lifestyle specialty retail company. The Company operates through two segments: Retail and Wholesale. The Company’s Retail segment consists of its Urban Outfitters, Anthropologie, Free People, Terrain and Bhldn brands, whose merchandise is sold to its customers through retail stores, Websites, mobile applications, catalogs and customer contact centers. The Retail segment also includes Vetri Family, which operates restaurants under the names Amis, Alla Spina, Lo Spiedo, Pizzeria Vetri and Osteria. Its Wholesale segment consists of the Free People wholesale division that primarily designs, develops and markets young women’s contemporary casual apparel and shoes through individual and chain specialty stores and department stores. The Company’s Wholesale segment includes Free People-branded tops, bottoms, sweaters, dresses, intimates, shoes and activewear, which are sold through department and specialty stores around the world, and its Free People stores.

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