Analyzing Citi Trends (CTRN) & The Competition

Citi Trends (NASDAQ:CTRN) is one of 285 publicly-traded companies in the “Specialty Retail” industry, but how does it compare to its competitors? We will compare Citi Trends to similar businesses based on the strength of its analyst recommendations, dividends, risk, institutional ownership, earnings, profitability and valuation.

Volatility and Risk

Citi Trends has a beta of 1.81, suggesting that its share price is 81% more volatile than the S&P 500. Comparatively, Citi Trends’ competitors have a beta of 1.66, suggesting that their average share price is 66% more volatile than the S&P 500.

Earnings & Valuation

This table compares Citi Trends and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Citi Trends	$819.96 million	$5.21 million	58.73
Citi Trends Competitors	$7.05 billion	$386.47 million	31.96

Citi Trends’ competitors have higher revenue and earnings than Citi Trends. Citi Trends is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Citi Trends and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Citi Trends	0.84%	8.11%	2.00%
Citi Trends Competitors	-3.67%	-13.85%	3.19%

Insider and Institutional Ownership

51.6% of shares of all “Specialty Retail” companies are held by institutional investors. 9.6% of Citi Trends shares are held by insiders. Comparatively, 20.5% of shares of all “Specialty Retail” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings for Citi Trends and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Citi Trends	0	1	2	0	2.67
Citi Trends Competitors	3661	15555	21587	586	2.46

Citi Trends currently has a consensus price target of $81.00, indicating a potential upside of 68.19%. As a group, “Specialty Retail” companies have a potential upside of 8.88%. Given Citi Trends’ stronger consensus rating and higher possible upside, analysts clearly believe Citi Trends is more favorable than its competitors.

Summary

Citi Trends beats its competitors on 7 of the 13 factors compared.

Citi Trends Company Profile

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.