Head-To-Head Survey: Burberry Group (OTCMKTS:BURBY) versus Citi Trends (NASDAQ:CTRN)

Burberry Group (OTCMKTS:BURBY) and Citi Trends (NASDAQ:CTRN) are both retail/wholesale companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, profitability, institutional ownership, analyst recommendations, dividends and earnings.

Earnings & Valuation

This table compares Burberry Group and Citi Trends”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Burberry Group	$3.14 billion	1.98	-$95.68 million	N/A	N/A
Citi Trends	$753.08 million	0.46	-$43.17 million	($2.00)	-20.95

Citi Trends has lower revenue, but higher earnings than Burberry Group.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Burberry Group and Citi Trends, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Burberry Group	0	1	0	4	3.60
Citi Trends	1	0	2	0	2.33

Citi Trends has a consensus target price of $39.50, indicating a potential downside of 5.73%. Given Citi Trends’ higher probable upside, analysts plainly believe Citi Trends is more favorable than Burberry Group.

Profitability

This table compares Burberry Group and Citi Trends’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Burberry Group	N/A	N/A	N/A
Citi Trends	-2.05%	-22.84%	-5.55%

Insider & Institutional Ownership

10.3% of Burberry Group shares are owned by institutional investors. 10.7% of Citi Trends shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Burberry Group has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500. Comparatively, Citi Trends has a beta of 2.16, indicating that its share price is 116% more volatile than the S&P 500.

Summary

Burberry Group beats Citi Trends on 8 of the 13 factors compared between the two stocks.

About Burberry Group

Burberry Group plc, together with its subsidiaries, manufactures, retails, and wholesales luxury goods under the Burberry brand. The company operates in two segments, Retail/Wholesale and Licensing. It provides womenswear, menswear, childrenswear, beauty, eyewear, shoes, and accessories, as well as leather goods, such as bags. The company also licenses third parties to manufacture and distribute products using the Burberry trademarks. It sells its products through Burberry mainline stores, concessions, outlets, digital commerce, Burberry franchisees, department stores, and multi-brand specialty accounts, as well as through Burberry.com website. It operates in the Asia Pacific, Europe, the Middle East, India, Africa, and the Americas. The company was founded in 1856 and is headquartered in London, the United Kingdom.

About Citi Trends

Citi Trends, Inc. operates as a value retailer of fashion apparel, accessories, and home goods. The company offers apparel, such as fashion sportswear and footwear for men and ladies, as well as apparel for kids, including newborns, infants, toddlers, boys, and girls; sleepwear, lingerie, and scrubs for ladies; and kids uniforms and accessories. It also provides accessories and beauty products that include handbags, luggage, hats, belts, sunglasses, jewelry, and watches, as well as offers outerwear for men and women. In addition, the company offers home and lifestyle products comprising home products for the bedroom, bathroom, kitchen, and decorative accessories; and food, tech, team sports, health and products, as well as seasonal items, books, and toys. Citi Trends, Inc. provides its products primarily to African American and multicultural families in the United States. The company was formerly known as Allied Fashion, Inc. and changed its name to Citi Trends, Inc. in 2001. Citi Trends, Inc. was founded in 1946 and is headquartered in Savannah, Georgia.