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How Does Urban Outfitters Compare to Its Peers?

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Urban Outfitters and its peers

In this article, we’ll compare Urban Outfitters to its industry peers:

  • The PE (price-to-earnings) ratios of Urban Outfitters (URBN), Nordstrom (JWN), Gap (GPS), American Eagle Outfitters (AEO), and Guess (GES) were 13.2x, 14.4x, 9.6x, 20.3x, and 17.2x, respectively, as of November 16, 2015.
  • The PBV (price-to-book value) ratios of Urban Outfitters, Nordstrom, Gap, American Eagle Outfitters, and Guess were 2.4x, 4.2x, 4.0x, 2.5x, and 1.6x, respectively.

  • The price-to-sales ratios of Urban Outfitters, Nordstrom, Gap, American Eagle Outfitters, and Guess were 0.82x, 0.73x, 0.64x, 0.84x, and 0.72x, respectively.

According to the above findings, these peers have mostly outperformed Urban Outfitters based on PE and PBV ratios. However, Urban Outfitters is ahead of its peers based on price-to-sales ratio.

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ETFs that invest in Urban Outfitters

The Guggenheim S&P Equal Weight Consumer Discretionary ETF (RCD) invests 1.1% of its holdings in Urban Outfitters. The ETF tracks an equal-weighted index of large cap US Consumer Discretionary stocks drawn from the S&P 500.

The SPDR S&P Retail ETF (XRT) invests 0.94% of its holdings in Urban Outfitters. The ETF tracks a broad-based, equal-weighted index of stocks in the US retail industry.

The PowerShares Contrarian Opportunities Portfolio (CNTR) invests 0.73% of its holdings in Urban Outfitters. The ETF tracks an index of US firms with strong fundamental metrics but poor trailing-three-year performance. The index is equal-weighted.

Comparing Urban Outfitters and its ETFs

Now let’s look at Urban Outfitters compared to the ETFs mentioned above:

  • The YTD (year-to-date) price movements of Urban Outfitters, RCD, XRT, and CNTR were -35.5%, -2.4%, -11.0%, and -9.1%, respectively, as of November 16, 2015.
  • The PE ratios of Urban Outfitters, RCD, XRT, and CNTR were 13.2x, 15.3x, 23.8x, and 14.9x, respectively.
  • The PBV ratios of Urban Outfitters, RCD, XRT, and CNTR were 2.4x, 3.7x, 2.8x, and 1.6x, respectively.

Thus, these ETFs have mostly outperformed Urban Outfitters based on price movement, PE ratio, and PBV ratio.

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