Canada Goose (NYSE:GOOS – Get Free Report) and American Eagle Outfitters (NYSE:AEO – Get Free Report) are both retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, institutional ownership, analyst recommendations, risk and profitability.
Institutional & Insider Ownership
83.6% of Canada Goose shares are held by institutional investors. Comparatively, 97.3% of American Eagle Outfitters shares are held by institutional investors. 0.5% of Canada Goose shares are held by insiders. Comparatively, 8.7% of American Eagle Outfitters shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of current ratings and target prices for Canada Goose and American Eagle Outfitters, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Canada Goose | 2 | 3 | 4 | 1 | 2.40 |
| American Eagle Outfitters | 3 | 9 | 1 | 1 | 2.00 |
Profitability
This table compares Canada Goose and American Eagle Outfitters’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Canada Goose | 1.96% | 15.35% | 4.62% |
| American Eagle Outfitters | 3.74% | 13.67% | 5.80% |
Valuation & Earnings
This table compares Canada Goose and American Eagle Outfitters”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Canada Goose | $969.08 million | 1.25 | $68.13 million | $0.18 | 69.53 |
| American Eagle Outfitters | $5.27 billion | 0.60 | $329.38 million | $1.04 | 17.87 |
American Eagle Outfitters has higher revenue and earnings than Canada Goose. American Eagle Outfitters is trading at a lower price-to-earnings ratio than Canada Goose, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Canada Goose has a beta of 1.64, suggesting that its share price is 64% more volatile than the S&P 500. Comparatively, American Eagle Outfitters has a beta of 1.58, suggesting that its share price is 58% more volatile than the S&P 500.
About Canada Goose
Canada Goose Holdings Inc., together with its subsidiaries, designs, manufactures, and sells performance luxury apparel for men, women, youth, children, and babies in Canada, the United States, Asia Pacific, Europe, the Middle East, and Africa. The company operates through three segments: Direct-to-Consumer, Wholesale, and Other. It offers parkas, lightweight down jackets, rainwear, windwear, apparel, fleece, footwear, and accessories for fall, winter, and spring seasons. The company operates through national e-commerce markets and directly operated retail stores. Canada Goose Holdings Inc. was founded in 1957 and is headquartered in Toronto, Canada.
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.
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