Head to Head Analysis: American Eagle Outfitters (NYSE:AEO) and RideNow Group (NASDAQ:RDNW)

RideNow Group (NASDAQ:RDNW) and American Eagle Outfitters (NYSE:AEO) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, institutional ownership, earnings and risk.

Profitability

This table compares RideNow Group and American Eagle Outfitters’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RideNow Group	-0.76%	N/A	-1.17%
American Eagle Outfitters	5.91%	23.63%	9.59%

Earnings & Valuation

This table compares RideNow Group and American Eagle Outfitters”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RideNow Group	$1.10 billion	0.19	-$52.40 million	($0.23)	-23.74
American Eagle Outfitters	$5.75 billion	0.57	$191.98 million	$1.96	10.04

American Eagle Outfitters has higher revenue and earnings than RideNow Group. RideNow Group 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.

Analyst Ratings

This is a summary of current recommendations for RideNow Group and American Eagle Outfitters, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RideNow Group	1	3	0	0	1.75
American Eagle Outfitters	1	12	2	0	2.07

RideNow Group presently has a consensus target price of $8.50, suggesting a potential upside of 55.68%. American Eagle Outfitters has a consensus target price of $19.55, suggesting a potential downside of 0.67%. Given RideNow Group’s higher possible upside, analysts plainly believe RideNow Group is more favorable than American Eagle Outfitters.

Volatility & Risk

RideNow Group has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500. Comparatively, American Eagle Outfitters has a beta of 1.28, suggesting that its stock price is 28% more volatile than the S&P 500.

Insider & Institutional Ownership

66.1% of RideNow Group shares are owned by institutional investors. Comparatively, 97.3% of American Eagle Outfitters shares are owned by institutional investors. 55.3% of RideNow Group shares are owned by company insiders. Comparatively, 8.9% of American Eagle Outfitters shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

American Eagle Outfitters beats RideNow Group on 11 of the 14 factors compared between the two stocks.

About RideNow Group

RumbleOn, Inc. primarily operates as a powersports retailer in the United States. It operates in two segments, Powersports and Vehicle Transportation Services. The Powersports segment provides new and pre-owned motorcycles, all-terrain vehicles, utility terrain or side-by-side vehicles, personal watercraft, snowmobiles, and other powersports products. It also offers parts, apparel, accessories, finance and insurance products and services, and aftermarket products, as well as repair and maintenance services. The Vehicle Transportation Services segment provides asset-light transportation brokerage services facilitating automobile transportation. The company was formerly known as Smart Server, Inc. and changed its name to RumbleOn, Inc. in February 2017. The company was incorporated in 2013 and is based in Irving, Texas.

About American Eagle Outfitters

American Eagle Outfitters, Inc. operates as a multi-brand specialty retailer in the United States and internationally. The company provides jeans, apparel and accessories, and personal care products for women and men under the American Eagle brand; and intimates, apparel, activewear, and swim collections under the Aerie and OFFLINE by Aerie brands. It also offers menswear products under the Todd Snyder New York brand; and fashion clothing and accessories under the Unsubscribed brand. The company sells its products through own and licensed retail stores; concession-based shops-within-shops; and digital channels, such as www.ae.com, www.aerie.com, www.toddsnyder.com, and www.unsubscribed.com. American Eagle Outfitters, Inc. was founded in 1977 and is headquartered in Pittsburgh, Pennsylvania.