American Eagle Outfitters (NYSE:AEO – Get Free Report) and Buckle (NYSE:BKE – Get Free Report) are both mid-cap consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, profitability and dividends.
Dividends
American Eagle Outfitters pays an annual dividend of $0.50 per share and has a dividend yield of 2.3%. Buckle pays an annual dividend of $1.40 per share and has a dividend yield of 3.2%. American Eagle Outfitters pays out 25.5% of its earnings in the form of a dividend. Buckle pays out 32.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. American Eagle Outfitters has raised its dividend for 2 consecutive years.
Earnings & Valuation
This table compares American Eagle Outfitters and Buckle”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American Eagle Outfitters | $5.75 billion | 0.63 | $191.98 million | $1.96 | 11.00 |
| Buckle | $1.30 billion | 1.75 | $209.74 million | $4.34 | 10.15 |
Buckle has lower revenue, but higher earnings than American Eagle Outfitters. Buckle is trading at a lower price-to-earnings ratio than American Eagle Outfitters, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares American Eagle Outfitters and Buckle’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| American Eagle Outfitters | 5.91% | 23.63% | 9.59% |
| Buckle | 16.62% | 46.91% | 20.97% |
Insider & Institutional Ownership
97.3% of American Eagle Outfitters shares are owned by institutional investors. Comparatively, 53.9% of Buckle shares are owned by institutional investors. 8.9% of American Eagle Outfitters shares are owned by insiders. Comparatively, 38.4% of Buckle shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Risk and Volatility
American Eagle Outfitters has a beta of 1.34, suggesting that its stock price is 34% more volatile than the S&P 500. Comparatively, Buckle has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent recommendations and price targets for American Eagle Outfitters and Buckle, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Eagle Outfitters | 1 | 12 | 2 | 0 | 2.07 |
| Buckle | 0 | 2 | 0 | 0 | 2.00 |
American Eagle Outfitters presently has a consensus target price of $19.55, indicating a potential downside of 9.36%. Buckle has a consensus target price of $46.00, indicating a potential upside of 4.43%. Given Buckle’s higher possible upside, analysts clearly believe Buckle is more favorable than American Eagle Outfitters.
Summary
Buckle beats American Eagle Outfitters on 9 of the 17 factors compared between the two stocks.
About American Eagle Outfitters
American Eagle Outfitters, Inc. is a specialty retailer of apparel, accessories and personal-care products. Its American Eagle brand offers casual clothing, including denim, tops and accessories, while Aerie sells intimates, loungewear, swimwear and activewear. The company also operates OFFLINE by Aerie, a brand focused on activewear and apparel. The company sells through its retail stores and online channels, serving customers primarily in the United States and Canada, with additional international reach through stores and other distribution arrangements.
About Buckle
The Buckle, Inc. is a specialty retailer of casual apparel, footwear and accessories. Its stores offer clothing for men and women, with a particular focus on denim, alongside tops, outerwear, shoes and fashion accessories. The company sells merchandise from national brands as well as private-label lines, and combines its in-store business with online sales. Its retail locations serve customers across the United States. Founded in Nebraska in 1948 as Mills Clothing, the company later adopted The Buckle name.
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