AEO vs. JWN, WINA, GPS, ANF, URBN, FL, BKE, CAL, GES, 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), Winmark (WINA), GAP (GPS), Abercrombie & Fitch (ANF), Urban Outfitters (URBN), Foot Locker (FL), Buckle (BKE), Caleres (CAL), Guess? (GES), 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 stock? We will compare the two businesses based on the strength of their risk, community ranking, dividends, institutional ownership, valuation, analyst recommendations, media sentiment, profitability and earnings.
American Eagle Outfitters pays an annual dividend of $0.50 per share and has a dividend yield of 2.3%. Nordstrom pays an annual dividend of $0.76 per share and has a dividend yield of 3.4%. 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.
In the previous week, Nordstrom had 7 more articles in the media than American Eagle Outfitters. MarketBeat recorded 17 mentions for Nordstrom and 10 mentions for American Eagle Outfitters. American Eagle Outfitters' average media sentiment score of 0.63 beat Nordstrom's score of 0.63 indicating that American Eagle Outfitters is being referred to more favorably in the media.
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.
American Eagle Outfitters presently has a consensus price target of $25.00, suggesting a potential upside of 15.00%. Nordstrom has a consensus price target of $17.75, suggesting a potential downside of 19.81%. Given American Eagle Outfitters' stronger consensus rating and higher possible upside, research analysts clearly believe American Eagle Outfitters is more favorable than Nordstrom.
American Eagle Outfitters has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500. Comparatively, Nordstrom has a beta of 2.62, suggesting that its share price is 162% more volatile than the S&P 500.
97.3% of American Eagle Outfitters shares are held by institutional investors. Comparatively, 88.7% of Nordstrom shares are held by institutional investors. 7.3% of American Eagle Outfitters shares are held by company insiders. Comparatively, 5.8% of Nordstrom shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
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 received 144 more outperform votes than Nordstrom when rated by MarketBeat users. Likewise, 64.27% of users gave American Eagle Outfitters an outperform vote while only 58.48% of users gave Nordstrom an outperform vote.
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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