a.k.a. Brands (NYSE:AKA – Get Free Report) and American Eagle Outfitters (NYSE:AEO – Get Free Report) are both retail/wholesale companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, dividends, valuation, institutional ownership, profitability, risk and analyst recommendations.
Analyst Ratings
This is a summary of recent recommendations and price targets for a.k.a. Brands and American Eagle Outfitters, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| a.k.a. Brands | 1 | 2 | 1 | 0 | 2.00 |
| American Eagle Outfitters | 2 | 11 | 1 | 1 | 2.07 |
a.k.a. Brands presently has a consensus target price of $18.33, suggesting a potential upside of 67.55%. American Eagle Outfitters has a consensus target price of $21.45, suggesting a potential downside of 18.46%. Given a.k.a. Brands’ higher probable upside, research analysts plainly believe a.k.a. Brands is more favorable than American Eagle Outfitters.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| a.k.a. Brands | $574.70 million | 0.20 | -$25.99 million | ($2.46) | -4.45 |
| American Eagle Outfitters | $5.33 billion | 0.84 | $329.38 million | $1.16 | 22.68 |
American Eagle Outfitters has higher revenue and earnings than a.k.a. Brands. a.k.a. Brands 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.
Institutional and Insider Ownership
55.4% of a.k.a. Brands shares are held by institutional investors. Comparatively, 97.3% of American Eagle Outfitters shares are held by institutional investors. 17.6% of a.k.a. Brands shares are held by company insiders. Comparatively, 8.7% of American Eagle Outfitters shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Risk and Volatility
a.k.a. Brands has a beta of 1.62, suggesting that its share price is 62% more volatile than the S&P 500. Comparatively, American Eagle Outfitters has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500.
Profitability
This table compares a.k.a. Brands and American Eagle Outfitters’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| a.k.a. Brands | -4.42% | -23.20% | -6.56% |
| American Eagle Outfitters | 3.90% | 13.82% | 5.59% |
Summary
American Eagle Outfitters beats a.k.a. Brands on 11 of the 14 factors compared between the two stocks.
About a.k.a. Brands
a.k.a. Brands Holding Corp. operates a portfolio of online fashion brands in the United States, Australia, and internationally. The company offers streetwear apparel, dresses, tops, bottoms, shoes, headwear, and accessories through its online stores under the Princess Polly, Petal & Pup, Culture Kings, and mnml brands. It also operates physical stores under the Culture Kings brand. The company was founded in 2018 and is headquartered in San Francisco, California.
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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