Analyzing Urban Outfitters (NASDAQ:URBN) & OneWater Marine (NASDAQ:ONEW)

Urban Outfitters (NASDAQ:URBN) and OneWater Marine (NASDAQ:ONEW) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.

Analyst Recommendations

This is a breakdown of current recommendations for Urban Outfitters and OneWater Marine, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Urban Outfitters	0	8	9	0	2.53
OneWater Marine	1	2	2	0	2.20

Urban Outfitters currently has a consensus target price of $90.54, suggesting a potential upside of 4.61%. OneWater Marine has a consensus target price of $13.00, suggesting a potential upside of 38.74%. Given OneWater Marine’s higher probable upside, analysts clearly believe OneWater Marine is more favorable than Urban Outfitters.

Profitability

This table compares Urban Outfitters and OneWater Marine’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Urban Outfitters	8.79%	18.64%	10.34%
OneWater Marine	-6.72%	2.20%	0.44%

Insider and Institutional Ownership

77.6% of Urban Outfitters shares are owned by institutional investors. Comparatively, 94.3% of OneWater Marine shares are owned by institutional investors. 32.1% of Urban Outfitters shares are owned by company insiders. Comparatively, 19.5% of OneWater Marine shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Urban Outfitters has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500. Comparatively, OneWater Marine has a beta of 1.6, indicating that its stock price is 60% more volatile than the S&P 500.

Valuation and Earnings

This table compares Urban Outfitters and OneWater Marine”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Urban Outfitters	$6.17 billion	1.20	$464.92 million	$6.41	13.50
OneWater Marine	$1.87 billion	0.08	-$114.58 million	($7.46)	-1.26

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

Summary

Urban Outfitters beats OneWater Marine on 11 of the 14 factors compared between the two stocks.

About Urban Outfitters

Urban Outfitters, Inc. engages in the retail and wholesale of general consumer products. The company operates through three segments: Retail, Wholesale, and Nuuly. It operates Urban Outfitters stores, which offer women's and men's fashion apparel, activewear, intimates, footwear, accessories, home goods, electronics, and beauty products for young adults aged 18 to 28; and Anthropologie stores that provide women's apparel, accessories, intimates, shoes, and home furnishings, as well as gifts, decorative items, and beauty and wellness products for women aged 28 to 45. The company also operates Terrain stores that provide lifestyle home products, garden and outdoor living products, antiques, live plants, flowers, wellness products, and accessories. In addition, it operates Free People retail stores, which offer casual women's apparel, intimates, activewear, shoes, accessories, home products, gifts, and beauty and wellness products for young women aged 25 to 30; and restaurants, as well as women's apparel subscription rental service under the Nuuly brand. Further, the company is involved in the wholesale of young women's contemporary casual apparel, intimates, activewear, and shoes under the Free People brand; and apparel collections under the Urban Outfitters brand. The company serves its customers directly through retail stores, websites, mobile applications, catalogs and customer contact centers, franchisee-owned stores, and department and specialty stores, as well as social media and third-party digital platforms. Urban Outfitters, Inc. was founded in 1970 and is based in Philadelphia, Pennsylvania.

About OneWater Marine

OneWater Marine Inc. operates as a recreational boat retailer in the United States. The company offers new and pre-owned recreational boats and yachts, as well as related marine products, such as parts and accessories. It provides boat repair and maintenance services. In addition, the company arranges boat financing and insurance; and other ancillary services, including indoor and outdoor storage, and marina services. Further, it provides rental of boats and personal watercraft services. OneWater Marine Inc. was founded in 2014 and is headquartered in Buford, Georgia.