Abercrombie & Fitch Co. (ANF)’s Financial Results Comparing With Citi Trends Inc. (NASDAQ:CTRN)

This is therefore a contrasting of the analyst recommendations, profitability, risk, institutional ownership, dividends, earnings and valuation in Abercrombie & Fitch Co. (NYSE:ANF) and Citi Trends Inc. (NASDAQ:CTRN). The two are both Apparel Stores companies that compete with one another.

Earnings and Valuation

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Abercrombie & Fitch Co. 3.59B 0.29 97.85M 0.95 27.26
Citi Trends Inc. 763.55M 0.24 17.86M 1.62 11.02

Table 1 shows gross revenue, earnings per share (EPS) and valuation of the two companies. Citi Trends Inc. appears to has lower revenue, but higher earnings than Abercrombie & Fitch Co. Company that currently has a higher P/E ratio means that it is the more expensive of the two businesses. Abercrombie & Fitch Co. is thus currently the expensive of the two stocks because it has a higher P/E ratio.

Profitability

Table 2 represents Abercrombie & Fitch Co. (NYSE:ANF) and Citi Trends Inc. (NASDAQ:CTRN)’s return on assets, return on equity and net margins.

Net Margins Return on Equity Return on Assets
Abercrombie & Fitch Co. 2.73% 6.4% 3.3%
Citi Trends Inc. 2.34% 10.7% 7%

Volatility and Risk

Abercrombie & Fitch Co.’s current beta is 0.65 and it happens to be 35.00% less volatile than Standard and Poor’s 500. From a competition point of view, Citi Trends Inc. has a 0.38 beta which is 62.00% less volatile compared to Standard and Poor’s 500.

Liquidity

The current Quick Ratio of Abercrombie & Fitch Co. is 1.6 while its Current Ratio is 2.4. Meanwhile, Citi Trends Inc. has a Current Ratio of 2.2 while its Quick Ratio is 0.8. Abercrombie & Fitch Co. is better positioned to pay off its short-term and long-term debts than Citi Trends Inc.

Dividends

Abercrombie & Fitch Co. pays out $0.8 per share annually while its annual dividend yield is 5.21%. The dividend yield for Citi Trends Inc. is 2.14% while its annual dividend payout is $0.32 per share.

Analyst Recommendations

The next table highlights the given recommendations and ratings for Abercrombie & Fitch Co. and Citi Trends Inc.

Sell Ratings Hold Ratings Buy Ratings Rating Score
Abercrombie & Fitch Co. 3 5 1 2.11
Citi Trends Inc. 0 0 0 0.00

The average price target of Abercrombie & Fitch Co. is $24.44, with potential upside of 57.78%.

Institutional & Insider Ownership

The shares of both Abercrombie & Fitch Co. and Citi Trends Inc. are owned by institutional investors at 0% and 95.3% respectively. About 0.7% of Abercrombie & Fitch Co.’s share are held by insiders. Insiders Comparatively, held 2.5% of Citi Trends Inc. shares.

Performance

Here are the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
Abercrombie & Fitch Co. -11.26% -3.64% 20.78% 37.29% 2.41% 29.28%
Citi Trends Inc. -5.4% -7.7% -12.45% -32.6% -39.35% -12.41%

For the past year Abercrombie & Fitch Co. had bullish trend while Citi Trends Inc. had bearish trend.

Summary

Abercrombie & Fitch Co. beats Citi Trends Inc. on 13 of the 16 factors.

Abercrombie & Fitch Co., through its subsidiaries, operates as a specialty retailer. The Company operates through two segments, Abercrombie and Hollister. It offers knit tops, woven shirts, graphic T-shirts, fleece, sweaters, jeans, woven pants, shorts, outerwear, dresses, intimates, and swimwear; and personal care products and accessories for men, women, and kids under the Abercrombie & Fitch, abercrombie kids, Hollister, and Gilly Hicks brand names. As of January 28, 2017, it operated through 709 stores in the United States; and 189 stores in Canada, Europe, Asia, and the Middle East. The company sells products through its stores and direct-to-consumer operations, as well as through various wholesale, franchise, and licensing arrangements. Abercrombie & Fitch Co. was founded in 1892 and is headquartered in New Albany, Ohio.

Citi Trends, Inc. operates as an off-price retailer of urban fashion apparel and accessories. The company offers apparel comprising fashion sportswear for men, women, and children, as well as offerings for newborns, infants, toddlers, boys, and girls; accessories comprising handbags, jewelry, footwear, belts, intimate apparel, scrubs, and sleepwear; and decorative home products, functional home products, beauty products, books, toys, and electronic accessories. It also offers its products through the Internet. The company offers its products primarily to African-Americans in the United States. As of March 23, 2017, it operated 538 stores in 31 states. The company was founded in 1946 and is headquartered in Savannah, Georgia.

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