Analyzing Urban Outfitters (NASDAQ:URBN) and Burberry Group (OTCMKTS:BURBY)

Urban Outfitters (NASDAQ:URBN) and Burberry Group (OTCMKTS:BURBY) are both mid-cap retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, risk, profitability, dividends and earnings.

Risk and Volatility

Urban Outfitters has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500. Comparatively, Burberry Group has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Urban Outfitters and Burberry Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Urban Outfitters	1	8	8	0	2.41
Burberry Group	0	1	0	2	3.33

Urban Outfitters presently has a consensus price target of $86.25, indicating a potential upside of 20.63%. Given Urban Outfitters’ higher probable upside, research analysts plainly believe Urban Outfitters is more favorable than Burberry Group.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Urban Outfitters	$6.17 billion	0.99	$464.92 million	$5.07	14.10
Burberry Group	$3.14 billion	1.91	-$95.68 million	N/A	N/A

Urban Outfitters has higher revenue and earnings than Burberry Group.

Profitability

This table compares Urban Outfitters and Burberry Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Urban Outfitters	7.54%	18.96%	10.46%
Burberry Group	N/A	N/A	N/A

Insider & Institutional Ownership

77.6% of Urban Outfitters shares are owned by institutional investors. Comparatively, 10.3% of Burberry Group shares are owned by institutional investors. 32.1% 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.

Summary

Urban Outfitters beats Burberry Group on 10 of the 13 factors compared between the two stocks.

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.

About Burberry Group

Burberry Group plc, together with its subsidiaries, manufactures, retails, and wholesales luxury goods under the Burberry brand. The company operates in two segments, Retail/Wholesale and Licensing. It provides womenswear, menswear, childrenswear, beauty, eyewear, shoes, and accessories, as well as leather goods, such as bags. The company also licenses third parties to manufacture and distribute products using the Burberry trademarks. It sells its products through Burberry mainline stores, concessions, outlets, digital commerce, Burberry franchisees, department stores, and multi-brand specialty accounts, as well as through Burberry.com website. It operates in the Asia Pacific, Europe, the Middle East, India, Africa, and the Americas. The company was founded in 1856 and is headquartered in London, the United Kingdom.