Critical Contrast: MOGU (NYSE:MOGU) & Abercrombie & Fitch (NYSE:ANF)

Abercrombie & Fitch (NYSE:ANF) and MOGU (NYSE:MOGU) are both retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, risk and valuation.

Institutional and Insider Ownership

19.1% of MOGU shares are owned by institutional investors. 2.3% of Abercrombie & Fitch shares are owned by insiders. Comparatively, 19.8% of MOGU shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Abercrombie & Fitch has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500. Comparatively, MOGU has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500.

Profitability

This table compares Abercrombie & Fitch and MOGU’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Abercrombie & Fitch	9.34%	34.36%	13.50%
MOGU	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent recommendations for Abercrombie & Fitch and MOGU, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Abercrombie & Fitch	1	4	8	0	2.54
MOGU	1	0	0	0	1.00

Abercrombie & Fitch currently has a consensus price target of $112.64, indicating a potential upside of 34.40%. Given Abercrombie & Fitch’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Abercrombie & Fitch is more favorable than MOGU.

Earnings & Valuation

This table compares Abercrombie & Fitch and MOGU”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Abercrombie & Fitch	$5.27 billion	0.71	$506.92 million	$10.42	8.04
MOGU	$19.46 million	0.73	-$8.62 million	N/A	N/A

Abercrombie & Fitch has higher revenue and earnings than MOGU.

Summary

Abercrombie & Fitch beats MOGU on 9 of the 12 factors compared between the two stocks.

About Abercrombie & Fitch

Abercrombie & Fitch Co. engages in the retail of apparel, personal care products, and accessories. The firm operates through following geographical segments: Americas, EMEA and APAC. The Americas segment includes operations in North America and South America. The EMEA segment includes operations in Europe, the Middle East and Africa. The APAC segment includes operations in the Asia-Pacific region, including Asia and Oceania. The company was founded by David Abercrombie in 1892 and is headquartered in New Albany, OH.

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.