L Brands (LTD) vs. Citi Trends (CTRN) Critical Comparison

L Brands (NYSE: LTD) and Citi Trends (NASDAQ:CTRN) are both cyclical consumer goods & services companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, profitability, analyst recommendations and valuation.

Analyst Ratings

This is a breakdown of current recommendations for L Brands and Citi Trends, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
L Brands 0 0 0 0 N/A
Citi Trends 0 0 0 0 N/A

Dividends

Citi Trends pays an annual dividend of $0.32 per share and has a dividend yield of 1.8%. L Brands does not pay a dividend. Citi Trends pays out 35.2% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares L Brands and Citi Trends’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
L Brands N/A N/A N/A N/A N/A
Citi Trends $712.38 million 0.36 $35.16 million $0.91 19.77

Citi Trends has higher revenue and earnings than L Brands.

Profitability

This table compares L Brands and Citi Trends’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
L Brands 5.04% N/A N/A
Citi Trends 1.88% 6.93% 4.69%

Insider & Institutional Ownership

90.8% of Citi Trends shares are held by institutional investors. 4.6% of Citi Trends shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Citi Trends beats L Brands on 6 of the 8 factors compared between the two stocks.

About L Brands

L Brands, Inc. operates specialty retail business. The Company is focused on women’s intimate and other apparel, personal care, beauty and home fragrance categories. Its segments include Victoria’s Secret, Bath & Body Works, and Victoria’s Secret and Bath & Body Works International. It sells its merchandise through company-owned specialty retail stores in the United States, Canada, the United Kingdom and Greater China, which are mall-based; through Websites, and through international franchise, license and wholesale partners. It operates in the retail brands, which include Victoria’s Secret, PINK, Bath & Body Works and La Senza. La Senza is a specialty retailer of women’s intimate apparel. It sells its La Senza products at over 120 La Senza stores in Canada. Henri Bendel sells handbags, jewelry and other accessory products through New York and 28 other stores. Mast Global is a merchandise sourcing and production function serving the Company and its international partners.

About Citi Trends

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.

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