American Eagle Outfitters (NYSE:AEO) and China MeiDong Auto (OTCMKTS:CMEIF) Critical Survey

China MeiDong Auto (OTCMKTS:CMEIF) and American Eagle Outfitters (NYSE:AEO) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, dividends, profitability, institutional ownership, risk, analyst recommendations and valuation.

Valuation & Earnings

This table compares China MeiDong Auto 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
China MeiDong Auto	N/A	N/A	N/A	N/A	N/A
American Eagle Outfitters	$5.50 billion	0.50	$191.98 million	$1.62	10.09

American Eagle Outfitters has higher revenue and earnings than China MeiDong Auto.

Analyst Recommendations

This is a summary of recent ratings and target prices for China MeiDong Auto and American Eagle Outfitters, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China MeiDong Auto	0	0	0	0	0.00
American Eagle Outfitters	1	12	2	0	2.07

American Eagle Outfitters has a consensus target price of $19.91, suggesting a potential upside of 21.75%. Given American Eagle Outfitters’ stronger consensus rating and higher probable upside, analysts plainly believe American Eagle Outfitters is more favorable than China MeiDong Auto.

Institutional & Insider Ownership

97.3% of American Eagle Outfitters shares are held by institutional investors. 8.9% of American Eagle Outfitters shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares China MeiDong Auto and American Eagle Outfitters’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
China MeiDong Auto	N/A	N/A	N/A
American Eagle Outfitters	5.01%	20.95%	8.34%

Summary

American Eagle Outfitters beats China MeiDong Auto on 9 of the 9 factors compared between the two stocks.

About China MeiDong Auto

China MeiDong Auto Holdings Limited, an investment holding company, operates as an automobile dealer in the People's Republic of China. The company is involved in the sale of new passenger cars and spare parts; and provision of service and survey. It also provides after-sales services, such as auto registration, insurance, auto parts, repair and replacement, sales and maintenance of automotive supplies, etc.; financing referral solutions; and other value added services. In addition, the company engages in the trading of used vehicles and property management. It operates self-operated stores in Beijing, Hebei, Hubei, Hunan, Jiangxi, Fujian, Guangdong, Gansu, and Anhui provinces. The company was founded in 2003 and is headquartered in Dongguan, the People's Republic of China. China MeiDong Auto Holdings Limited is a subsidiary of Apex Sail Limited.

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.