CarParts.com (NASDAQ:PRTS) and Urban Outfitters (NASDAQ:URBN) Head-To-Head Analysis

Urban Outfitters (NASDAQ:URBN) and CarParts.com (NASDAQ:PRTS) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.

Institutional & Insider Ownership

77.6% of Urban Outfitters shares are owned by institutional investors. Comparatively, 75.3% of CarParts.com shares are owned by institutional investors. 32.1% of Urban Outfitters shares are owned by company insiders. Comparatively, 6.6% of CarParts.com shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Urban Outfitters and CarParts.com’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Urban Outfitters	8.79%	18.64%	10.34%
CarParts.com	-5.35%	-47.19%	-14.52%

Analyst Recommendations

This is a summary of current recommendations for Urban Outfitters and CarParts.com, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Urban Outfitters	0	7	9	0	2.56
CarParts.com	1	1	0	0	1.50

Urban Outfitters presently has a consensus price target of $90.54, indicating a potential upside of 4.27%. CarParts.com has a consensus price target of $6.00, indicating a potential downside of 24.34%. Given Urban Outfitters’ stronger consensus rating and higher possible upside, analysts clearly believe Urban Outfitters is more favorable than CarParts.com.

Volatility and Risk

Urban Outfitters has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500. Comparatively, CarParts.com has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500.

Valuation & Earnings

This table compares Urban Outfitters and CarParts.com”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Urban Outfitters	$6.17 billion	1.21	$464.92 million	$6.41	13.55
CarParts.com	$547.53 million	0.12	-$50.44 million	($4.33)	-1.83

Urban Outfitters has higher revenue and earnings than CarParts.com. CarParts.com 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 CarParts.com on 13 of the 13 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 CarParts.com

CarParts.com, Inc., together with its subsidiaries, operates as an online provider of aftermarket auto parts and accessories in the United States and the Philippines. It offers replacement parts, such as parts for the exterior of an automobile; mirror products; engine and chassis components, as well as other mechanical and electrical parts; and performance parts and accessories. The company sells its products to individual customers through its flagship website www.carparts.com and app; online marketplaces, including third-party auction sites and shopping portals; and auto parts wholesale distributors. The company was formerly known as U.S. Auto Parts Network, Inc. and changed its name to CarParts.com, Inc. in July 2020. CarParts.com, Inc. was incorporated in 1995 and is headquartered in Torrance, California.