Murphy USA (NYSE:MUSA) and Urban Outfitters (NASDAQ:URBN) Critical Contrast

Murphy USA (NYSE:MUSA) and Urban Outfitters (NASDAQ:URBN) are both mid-cap consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.

Profitability

This table compares Murphy USA and Urban Outfitters’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Murphy USA	2.85%	92.81%	13.36%
Urban Outfitters	8.79%	18.64%	10.34%

Volatility & Risk

Murphy USA has a beta of 0.31, suggesting that its share price is 69% less volatile than the S&P 500. Comparatively, Urban Outfitters has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500.

Institutional & Insider Ownership

80.8% of Murphy USA shares are held by institutional investors. Comparatively, 77.6% of Urban Outfitters shares are held by institutional investors. 9.0% of Murphy USA shares are held by insiders. Comparatively, 32.1% of Urban Outfitters shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Murphy USA and Urban Outfitters”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Murphy USA	$19.38 billion	0.48	$470.60 million	$35.67	14.53
Urban Outfitters	$6.17 billion	1.19	$464.92 million	$6.41	13.34

Murphy USA has higher revenue and earnings than Urban Outfitters. Urban Outfitters is trading at a lower price-to-earnings ratio than Murphy USA, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Murphy USA and Urban Outfitters, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Murphy USA	0	5	6	0	2.55
Urban Outfitters	0	8	9	0	2.53

Murphy USA presently has a consensus price target of $606.33, indicating a potential upside of 16.97%. Urban Outfitters has a consensus price target of $90.54, indicating a potential upside of 5.90%. Given Murphy USA’s stronger consensus rating and higher possible upside, analysts clearly believe Murphy USA is more favorable than Urban Outfitters.

Summary

Murphy USA beats Urban Outfitters on 9 of the 14 factors compared between the two stocks.

About Murphy USA

Murphy USA Inc. operates retail gasoline stations and convenience stores across the United States under the Murphy USA and Murphy Express brands. Its stores sell branded and unbranded gasoline and diesel fuel, along with convenience items such as beverages, snacks, tobacco products and other everyday merchandise. The company’s locations are concentrated in the South, Midwest and other parts of the country, including stores associated with its QuickChek brand in the Northeast. Murphy USA became an independent publicly traded company in 2013 after being spun off from Murphy Oil Corporation.

About Urban Outfitters

Urban Outfitters, Inc. is a lifestyle retailer that sells apparel, accessories, home furnishings, beauty products and other lifestyle merchandise. Its retail brands include Urban Outfitters, Anthropologie, Free People and FP Movement, and it operates Nuuly, a subscription clothing rental service. The company also designs and wholesales apparel and related products, particularly through its Free People and Anthropologie businesses. Its brands serve customers through stores and online channels in the United States and internationally, including in Canada and Europe.