Comparing Woolworths (OTCMKTS:WLWHY) & Abercrombie & Fitch (NYSE:ANF)

Woolworths (OTCMKTS:WLWHY) and Abercrombie & Fitch (NYSE:ANF) are both mid-cap retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, dividends, analyst recommendations, valuation and earnings.

Profitability

This table compares Woolworths and Abercrombie & Fitch’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Woolworths	N/A	N/A	N/A
Abercrombie & Fitch	9.63%	36.36%	14.26%

Earnings & Valuation

This table compares Woolworths and Abercrombie & Fitch”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Woolworths	$4.42 billion	0.71	$134.61 million	N/A	N/A
Abercrombie & Fitch	$5.27 billion	0.66	$506.92 million	$10.54	7.32

Abercrombie & Fitch has higher revenue and earnings than Woolworths.

Volatility and Risk

Woolworths has a beta of 0.42, indicating that its stock price is 58% less volatile than the S&P 500. Comparatively, Abercrombie & Fitch has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Woolworths and Abercrombie & Fitch, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Woolworths	0	1	0	1	3.00
Abercrombie & Fitch	0	5	8	0	2.62

Abercrombie & Fitch has a consensus target price of $116.00, indicating a potential upside of 50.26%. Given Abercrombie & Fitch’s higher probable upside, analysts plainly believe Abercrombie & Fitch is more favorable than Woolworths.

Summary

Abercrombie & Fitch beats Woolworths on 8 of the 11 factors compared between the two stocks.

About Woolworths

Woolworths Holdings Limited, through its subsidiaries, operates a chain of retail stores in South Africa, Australia, and New Zealand. It operates through seven segments: Woolworths Fashion, Beauty and Home; Woolworths Food; Woolworths Financial Services; Woolworths Logistics; Country Road Group; and Treasury. The company provides food, clothing, homeware, beauty, and various lifestyle products. It offers financial products and services, such as store cards, credit cards, personal loans, and other financial products. The company is also involved in the cash and debt management activities. Woolworths Holdings Limited was incorporated in 1929 and is based in Cape Town, South Africa.

About Abercrombie & Fitch

Abercrombie & Fitch Co. engages in the retail of apparel, personal care products, and accessories. The firm operates through following geographical segments: Americas, EMEA and APAC. The Americas segment includes operations in North America and South America. The EMEA segment includes operations in Europe, the Middle East and Africa. The APAC segment includes operations in the Asia-Pacific region, including Asia and Oceania. The company was founded by David Abercrombie in 1892 and is headquartered in New Albany, OH.