Abercrombie & Fitch (NYSE:ANF – Get Free Report) and America’s Car-Mart (NASDAQ:CRMT – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, earnings, profitability and institutional ownership.
Insider and Institutional Ownership
89.1% of America’s Car-Mart shares are owned by institutional investors. 2.3% of Abercrombie & Fitch shares are owned by company insiders. Comparatively, 18.4% of America’s Car-Mart shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Abercrombie & Fitch and America’s Car-Mart”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 | 1.25 | $506.92 million | $11.68 | 13.31 |
| America’s Car-Mart | $1.28 billion | 0.01 | -$139.11 million | ($23.80) | -0.03 |
Abercrombie & Fitch has higher revenue and earnings than America’s Car-Mart. America’s Car-Mart is trading at a lower price-to-earnings ratio than Abercrombie & Fitch, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Abercrombie & Fitch and America’s Car-Mart’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Abercrombie & Fitch | 10.03% | 33.52% | 13.05% |
| America’s Car-Mart | -18.21% | -15.19% | -4.73% |
Volatility & Risk
Abercrombie & Fitch has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500. Comparatively, America’s Car-Mart has a beta of 1.34, suggesting that its stock price is 34% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Abercrombie & Fitch and America’s Car-Mart, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Abercrombie & Fitch | 0 | 5 | 9 | 2 | 2.81 |
| America’s Car-Mart | 1 | 2 | 0 | 0 | 1.67 |
Abercrombie & Fitch presently has a consensus target price of $157.21, suggesting a potential upside of 1.09%. America’s Car-Mart has a consensus target price of $14.00, suggesting a potential upside of 1,657.03%. Given America’s Car-Mart’s higher probable upside, analysts clearly believe America’s Car-Mart is more favorable than Abercrombie & Fitch.
Summary
Abercrombie & Fitch beats America’s Car-Mart on 10 of the 14 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 America’s Car-Mart
America’s Car-Mart, Inc., through its subsidiaries, operates as an automotive retailer for the used car market in the United States. It primarily sells older model used vehicles and provides financing for its customers. The company was founded in 1981 and is headquartered in Rogers, Arkansas.
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