Abercrombie & Fitch (NYSE:ANF) and Levi Strauss & Co. (NYSE:LEVI) Head to Head Analysis

Levi Strauss & Co. (NYSE:LEVI) and Abercrombie & Fitch (NYSE:ANF) are both mid-cap retail/wholesale companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, profitability, analyst recommendations, earnings and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Levi Strauss & Co.	9.52%	25.35%	8.32%
Abercrombie & Fitch	9.34%	34.36%	13.50%

Insider and Institutional Ownership

69.1% of Levi Strauss & Co. shares are owned by institutional investors. 1.1% of Levi Strauss & Co. shares are owned by insiders. Comparatively, 2.3% of Abercrombie & Fitch shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Levi Strauss & Co. has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500. Comparatively, Abercrombie & Fitch has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500.

Earnings & Valuation

This table compares Levi Strauss & Co. and Abercrombie & Fitch”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Levi Strauss & Co.	$6.28 billion	1.49	$578.10 million	$1.57	15.53
Abercrombie & Fitch	$5.27 billion	0.78	$506.92 million	$10.42	8.87

Levi Strauss & Co. has higher revenue and earnings than Abercrombie & Fitch. Abercrombie & Fitch is trading at a lower price-to-earnings ratio than Levi Strauss & Co., indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations and price targets for Levi Strauss & Co. and Abercrombie & Fitch, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Levi Strauss & Co.	0	3	13	0	2.81
Abercrombie & Fitch	1	4	8	0	2.54

Levi Strauss & Co. currently has a consensus price target of $27.21, indicating a potential upside of 11.63%. Abercrombie & Fitch has a consensus price target of $112.64, indicating a potential upside of 21.89%. Given Abercrombie & Fitch’s higher probable upside, analysts plainly believe Abercrombie & Fitch is more favorable than Levi Strauss & Co..

Summary

Levi Strauss & Co. beats Abercrombie & Fitch on 9 of the 14 factors compared between the two stocks.

About Levi Strauss & Co.

Levi Strauss & Co. engages in the design, marketing, and sale of apparel products. The company offers jeans, casual and dress pants, tops, shorts, skirts, jackets, footwear, and related accessories. It operates through the following geographical segments: Americas, Europe, and Asia. The company was founded by Levi Strauss in 1853 and is headquartered in San Francisco, CA.

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.