Critical Contrast: Urban Outfitters (NASDAQ:URBN) versus MOGU (NYSE:MOGU)

MOGU (NYSE:MOGU) and Urban Outfitters (NASDAQ:URBN) are both retail/wholesale companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, profitability, risk and dividends.

Valuation & Earnings

This table compares MOGU and Urban Outfitters”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MOGU	$19.46 million	0.99	-$8.62 million	N/A	N/A
Urban Outfitters	$5.55 billion	1.32	$402.46 million	$5.30	15.44

Urban Outfitters has higher revenue and earnings than MOGU.

Risk and Volatility

MOGU has a beta of 0.4, meaning that its share price is 60% less volatile than the S&P 500. Comparatively, Urban Outfitters has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500.

Insider & Institutional Ownership

19.1% of MOGU shares are owned by institutional investors. Comparatively, 77.6% of Urban Outfitters shares are owned by institutional investors. 19.8% of MOGU shares are owned by insiders. Comparatively, 31.6% of Urban Outfitters shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MOGU	N/A	N/A	N/A
Urban Outfitters	8.15%	18.33%	10.04%

Analyst Recommendations

This is a breakdown of current ratings for MOGU and Urban Outfitters, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MOGU	1	0	0	0	1.00
Urban Outfitters	1	9	7	1	2.44

Urban Outfitters has a consensus target price of $85.17, indicating a potential upside of 4.06%. Given Urban Outfitters’ stronger consensus rating and higher possible upside, analysts plainly believe Urban Outfitters is more favorable than MOGU.

Summary

Urban Outfitters beats MOGU on 13 of the 13 factors compared between the two stocks.

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.

About Urban Outfitters

Urban Outfitters, Inc. engages in the retail and wholesale of general consumer products. The company operates through three segments: Retail, Wholesale, and Nuuly. It operates Urban Outfitters stores, which offer women's and men's fashion apparel, activewear, intimates, footwear, accessories, home goods, electronics, and beauty products for young adults aged 18 to 28; and Anthropologie stores that provide women's apparel, accessories, intimates, shoes, and home furnishings, as well as gifts, decorative items, and beauty and wellness products for women aged 28 to 45. The company also operates Terrain stores that provide lifestyle home products, garden and outdoor living products, antiques, live plants, flowers, wellness products, and accessories. In addition, it operates Free People retail stores, which offer casual women's apparel, intimates, activewear, shoes, accessories, home products, gifts, and beauty and wellness products for young women aged 25 to 30; and restaurants, as well as women's apparel subscription rental service under the Nuuly brand. Further, the company is involved in the wholesale of young women's contemporary casual apparel, intimates, activewear, and shoes under the Free People brand; and apparel collections under the Urban Outfitters brand. The company serves its customers directly through retail stores, websites, mobile applications, catalogs and customer contact centers, franchisee-owned stores, and department and specialty stores, as well as social media and third-party digital platforms. Urban Outfitters, Inc. was founded in 1970 and is based in Philadelphia, Pennsylvania.