Analyzing Oxford Industries (NYSE:OXM) & American Eagle Outfitters (NYSE:AEO)

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

Insider and Institutional Ownership

91.2% of Oxford Industries shares are held by institutional investors. Comparatively, 97.3% of American Eagle Outfitters shares are held by institutional investors. 6.5% of Oxford Industries shares are held by company insiders. Comparatively, 8.9% of American Eagle Outfitters shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for Oxford Industries and American Eagle Outfitters, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oxford Industries	2	6	0	0	1.75
American Eagle Outfitters	1	12	2	0	2.07

Oxford Industries currently has a consensus target price of $35.25, suggesting a potential upside of 28.74%. American Eagle Outfitters has a consensus target price of $19.55, suggesting a potential upside of 0.58%. Given Oxford Industries’ higher probable upside, equities analysts clearly believe Oxford Industries is more favorable than American Eagle Outfitters.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Oxford Industries	N/A	N/A	N/A
American Eagle Outfitters	N/A	N/A	N/A

Valuation & Earnings

This table compares Oxford Industries and American Eagle Outfitters”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oxford Industries	N/A	N/A	N/A	($0.51)	-53.69
American Eagle Outfitters	N/A	N/A	N/A	$1.96	9.91

Oxford Industries 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.

Summary

American Eagle Outfitters beats Oxford Industries on 6 of the 7 factors compared between the two stocks.

About Oxford Industries

Oxford Industries, Inc., an apparel company, designs, sources, markets, and distributes products of lifestyle and other brands worldwide. The company offers men's and women's sportswear and related products under the Tommy Bahama brand; and women's and girl's dresses and sportswear, scarves, bags, jewelry, and belts, as well as children's apparel, swim, footwear, and licensed products under the Lilly Pulitzer brand. In addition, the company licenses Tommy Bahama brand for various products, such as indoor and outdoor furniture, beach chairs, bedding and bath linens, fabrics, leather goods and gifts, headwear, hosiery, sleepwear, shampoo, toiletries, fragrances, cigar accessories, distilled spirits, and other products; and Lilly Pulitzer for stationery and gift products, home furnishing products, and eyewear. The company distribute its products through southerntide.com, thebeaufortbonnetcompany.com, and duckhead.com; and specialty retailers. It offers products through its retail stores, department stores, specialty stores, multi-branded e-commerce retailers, off-price retailers, and other retailers, as well as e-commerce sites. The company operates brand-specific full-price retail stores; Tommy Bahama food and beverage locations; and Tommy Bahama outlet stores. Oxford Industries, Inc. was founded in 1942 and is headquartered in Atlanta, Georgia.

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.