Citi Trends (NASDAQ: CTRN) and Urban Outfitters (NASDAQ:URBN) are both retail/wholesale companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, profitability, valuation and risk.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Citi Trends and Urban Outfitters, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Citi Trends 0 0 0 0 N/A
Urban Outfitters 3 18 9 0 2.20

Urban Outfitters has a consensus price target of $25.26, suggesting a potential downside of 27.95%. Given Urban Outfitters’ higher probable upside, analysts plainly believe Urban Outfitters is more favorable than Citi Trends.

Valuation & Earnings

This table compares Citi Trends and Urban Outfitters’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Citi Trends $695.17 million 0.52 $13.33 million $1.02 25.94
Urban Outfitters $3.55 billion 1.07 $218.12 million $1.50 23.37

Urban Outfitters has higher revenue and earnings than Citi Trends. Urban Outfitters is trading at a lower price-to-earnings ratio than Citi Trends, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

86.5% of Citi Trends shares are held by institutional investors. Comparatively, 86.2% of Urban Outfitters shares are held by institutional investors. 4.6% of Citi Trends shares are held by company insiders. Comparatively, 26.3% of Urban Outfitters shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Citi Trends has a beta of 0.51, suggesting that its stock price is 49% less volatile than the S&P 500. Comparatively, Urban Outfitters has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500.

Profitability

This table compares Citi Trends and Urban Outfitters’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Citi Trends 2.04% 7.70% 5.14%
Urban Outfitters 4.81% 13.34% 9.07%

Dividends

Citi Trends pays an annual dividend of $0.32 per share and has a dividend yield of 1.2%. Urban Outfitters does not pay a dividend. Citi Trends pays out 31.4% of its earnings in the form of a dividend.

Summary

Urban Outfitters beats Citi Trends on 12 of the 15 factors compared between the two stocks.

Citi Trends Company Profile

Citi Trends, Inc. is a retailer of urban fashion apparel and accessories. The Company’s segment is retail operations. The Company operates approximately 520 stores in both urban and rural markets in over 30 states. The Company offers products under its brands, such as Citi Steps and Red Ape. The Company’s merchandise includes apparel, accessories and home. Within apparel, the Company offers fashion sportswear for men, women and children, including offerings for newborns, infants, toddlers, boys and girls. Accessories include handbags, jewelry, footwear, belts, intimate apparel, scrubs and sleepwear. The Company’s home merchandise includes decorative home product, functional home product, beauty, books, toys and electronic accessories. The Company sources its merchandise from approximately 1,700 vendors, consisting of domestic manufacturers and importers.

Urban Outfitters Company Profile

Urban Outfitters, Inc. is a lifestyle specialty retail company. The Company operates through two segments: Retail and Wholesale. The Company’s Retail segment consists of its Urban Outfitters, Anthropologie, Free People, Terrain and Bhldn brands, whose merchandise is sold to its customers through retail stores, Websites, mobile applications, catalogs and customer contact centers. The Retail segment also includes Vetri Family, which operates restaurants under the names Amis, Alla Spina, Lo Spiedo, Pizzeria Vetri and Osteria. Its Wholesale segment consists of the Free People wholesale division that primarily designs, develops and markets young women’s contemporary casual apparel and shoes through individual and chain specialty stores and department stores. The Company’s Wholesale segment includes Free People-branded tops, bottoms, sweaters, dresses, intimates, shoes and activewear, which are sold through department and specialty stores around the world, and its Free People stores.

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