Contrasting Francesca’s (FRAN) and A�ropostale (AROPQ)

Francesca’s (NASDAQ:FRAN) and A�ropostale (OTCMKTS:AROPQ) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, valuation and dividends.

Valuation & Earnings

This table compares Francesca’s and A�ropostale’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Francesca’s $471.68 million 0.18 $15.56 million $0.52 4.44
A�ropostale N/A N/A N/A N/A N/A

Francesca’s has higher revenue and earnings than A�ropostale.

Analyst Ratings

This is a summary of current recommendations and price targets for Francesca’s and A�ropostale, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Francesca’s 0 3 1 0 2.25
A�ropostale 0 0 0 0 N/A

Francesca’s presently has a consensus price target of $5.50, suggesting a potential upside of 138.10%. Given Francesca’s’ higher probable upside, analysts clearly believe Francesca’s is more favorable than A�ropostale.

Insider and Institutional Ownership

96.8% of Francesca’s shares are owned by institutional investors. 1.2% of Francesca’s shares are owned by insiders. Comparatively, 9.3% of A�ropostale shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Francesca’s and A�ropostale’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Francesca’s 0.12% 3.35% 1.99%
A�ropostale N/A N/A N/A

Summary

Francesca’s beats A�ropostale on 7 of the 8 factors compared between the two stocks.

Francesca’s Company Profile

Francesca's Holdings Corporation, through its subsidiaries, operates a chain of retail boutiques. It offers fashion apparel, jewelry, accessories, and gifts primarily for women between the ages of 18 and 35. The company's apparel products comprise dresses, fashion tops, sweaters, cardigans and wraps, bottoms, outerwear and jackets, tees and tanks, and intimates; and jewelry includes necklaces, earrings, bracelets, and rings. Its accessories consist of handbags, clutches, wallets, shoes, belts, hats, scarves, sunglasses, watches, and hair accessories; and gifts include fragrances, candles, bath and body products, home accessories, books, wall art, nail polish, and miscellaneous items. As of June 5, 2018, the company operated 744 boutiques in 47 states and the District of Columbia. The company also sells products through its Website at francescas.com. Francesca's Holdings Corporation was founded in 1999 and is headquartered in Houston, Texas.

A�ropostale Company Profile

ARO Liquidation, Inc. operates as a specialty retailer of casual apparel and accessories for young women and men under the Aéropostale name. It operates through two segments, Retail Stores and E-Commerce; and International Licensing. The company also offers casual clothing and accessories focusing on 4 to 12 year olds under the P.S. from Aéropostale brand. As of May 1, 2016, it operated 739 Aéropostale stores in 50 states and Puerto Rico, 41 Aéropostale stores in Canada, and 25 P.S. from Aéropostale stores in 12 states. In addition, the company markets its products through ps4u.com and aeropostale.com, as well as its licensees operate 322 Aéropostale and P.S. from Aéropostale locations in the Middle East, Asia, Europe, and Latin America under various licensing agreements. Further, it operates GoJane.com that retails in fashion footwear, contemporary apparel, and other accessories for women online. The company was formerly known as Aéropostale, Inc. and changed its name to ARO Liquidation, Inc. in July 2017. ARO Liquidation, Inc. was founded in 1987 and is headquartered in New York, New York. On May 4, 2016, ARO Liquidation, Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the US Bankruptcy Court for the Southern District of New York.

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