AEO vs. JWN, RVLV, GPS, ANF, URBN, FL, BKE, GES, CAL, and SCVL
Should you be buying American Eagle Outfitters stock or one of its competitors? The main competitors of American Eagle Outfitters include Nordstrom (JWN), Revolve Group (RVLV), GAP (GPS), Abercrombie & Fitch (ANF), Urban Outfitters (URBN), Foot Locker (FL), Buckle (BKE), Guess? (GES), Caleres (CAL), and Shoe Carnival (SCVL).
American Eagle Outfitters (NYSE:AEO) and Nordstrom (NYSE:JWN) are both mid-cap retail/wholesale companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, dividends, valuation, earnings, profitability, community ranking, risk, institutional ownership and media sentiment.
American Eagle Outfitters pays an annual dividend of $0.50 per share and has a dividend yield of 2.4%. Nordstrom pays an annual dividend of $0.76 per share and has a dividend yield of 3.5%. American Eagle Outfitters pays out 45.0% of its earnings in the form of a dividend. Nordstrom pays out 41.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Nordstrom is clearly the better dividend stock, given its higher yield and lower payout ratio.
American Eagle Outfitters has a beta of 1.49, indicating that its stock price is 49% more volatile than the S&P 500. Comparatively, Nordstrom has a beta of 2.58, indicating that its stock price is 158% more volatile than the S&P 500.
97.3% of American Eagle Outfitters shares are owned by institutional investors. Comparatively, 88.7% of Nordstrom shares are owned by institutional investors. 7.3% of American Eagle Outfitters shares are owned by insiders. Comparatively, 5.8% of Nordstrom shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
In the previous week, Nordstrom had 4 more articles in the media than American Eagle Outfitters. MarketBeat recorded 11 mentions for Nordstrom and 7 mentions for American Eagle Outfitters. American Eagle Outfitters' average media sentiment score of 0.66 beat Nordstrom's score of 0.22 indicating that American Eagle Outfitters is being referred to more favorably in the media.
American Eagle Outfitters received 146 more outperform votes than Nordstrom when rated by MarketBeat users. Likewise, 64.27% of users gave American Eagle Outfitters an outperform vote while only 58.57% of users gave Nordstrom an outperform vote.
American Eagle Outfitters has higher earnings, but lower revenue than Nordstrom. Nordstrom 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.
American Eagle Outfitters presently has a consensus target price of $25.00, suggesting a potential upside of 19.90%. Nordstrom has a consensus target price of $17.42, suggesting a potential downside of 20.58%. Given American Eagle Outfitters' stronger consensus rating and higher probable upside, analysts plainly believe American Eagle Outfitters is more favorable than Nordstrom.
American Eagle Outfitters has a net margin of 4.12% compared to Nordstrom's net margin of -1.35%. American Eagle Outfitters' return on equity of 19.39% beat Nordstrom's return on equity.
Summary
American Eagle Outfitters beats Nordstrom on 14 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding AEO and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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