Burberry Group (OTCMKTS:BURBY) and Abercrombie & Fitch (NYSE:ANF) Financial Contrast

Abercrombie & Fitch (NYSE:ANF) and Burberry Group (OTCMKTS:BURBY) 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 profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.

Institutional & Insider Ownership

10.3% of Burberry Group shares are owned by institutional investors. 2.3% of Abercrombie & Fitch shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations for Abercrombie & Fitch and Burberry Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Abercrombie & Fitch	1	4	8	0	2.54
Burberry Group	0	1	0	1	3.00

Abercrombie & Fitch currently has a consensus price target of $112.64, suggesting a potential upside of 21.89%. Given Abercrombie & Fitch’s higher possible upside, equities research analysts clearly believe Abercrombie & Fitch is more favorable than Burberry Group.

Profitability

This table compares Abercrombie & Fitch and Burberry Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Abercrombie & Fitch	9.34%	34.36%	13.50%
Burberry Group	N/A	N/A	N/A

Volatility and Risk

Abercrombie & Fitch has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500. Comparatively, Burberry Group has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500.

Valuation & Earnings

This table compares Abercrombie & Fitch and Burberry Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Abercrombie & Fitch	$5.27 billion	0.78	$506.92 million	$10.42	8.87
Burberry Group	$3.24 billion	1.61	$28.15 million	N/A	N/A

Abercrombie & Fitch has higher revenue and earnings than Burberry Group.

Summary

Abercrombie & Fitch beats Burberry Group on 8 of the 13 factors compared between the two stocks.

About Abercrombie & Fitch

Abercrombie & Fitch Co. engages in the retail of apparel, personal care products, and accessories. The firm operates through following geographical segments: Americas, EMEA and APAC. The Americas segment includes operations in North America and South America. The EMEA segment includes operations in Europe, the Middle East and Africa. The APAC segment includes operations in the Asia-Pacific region, including Asia and Oceania. The company was founded by David Abercrombie in 1892 and is headquartered in New Albany, OH.

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.