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DBI vs URBN
Which Stock Would AI Choose? Designer Brands Inc. (DBI) vs. Urban Outfitters, Inc. (URBN) Stock Comparison
Key Takeaways
- Designer Brands ( DBI ) trades below $7 with a high debt‑to‑equity ratio, while Urban Outfitters ( URBN ) trades above $70 and enjoys solid profitability.
- DBI’s recent momentum stems from a margin‑led earnings rebound and a modest dividend, yet cash flow remains constrained by its leveraged balance sheet.
- URBN benefits from diversified lifestyle brands, higher return on equity (ROE), and a healthier cash position, supporting its recent price appreciation.
- Tickeron’s AI bots currently favor stocks with consistent trends and robust fundamentals; URBN’s profile aligns more closely with those criteria.
Introduction
Designer Brands ( DBI ) and Urban Outfitters ( URBN ) represent two distinct segments of the consumer‑discretionary sector: affordable footwear versus lifestyle apparel and home goods. Both are publicly traded, yet they differ markedly in scale, profitability, and market sentiment. This comparison is relevant for value‑oriented investors tracking turnaround opportunities and growth‑focused traders seeking exposure to resilient consumer brands.
DBI Overview and Recent Performance
Designer Brands Inc. (DBI) operates the DSW Designer Shoe Warehouse banner and a portfolio of licensed footwear brands. The company reported FY2026 revenue of roughly $2.9 billion, but earnings remain negative, with earnings per share (EPS – earnings per share, trailing twelve months, TTM) of –$0.19 and a net margin of –0.16 %. Recent weeks have seen DBI’s share price hover around $6.97, a modest gain after a March 26 earnings call that highlighted a margin‑led rebound and a renewed dividend of $0.20 (yield ≈2.9 %).
Key drivers of sentiment include: a 1.21‑beta indicating volatility above the market; a debt‑to‑equity ratio above 160 % reflecting legacy store‑lease obligations; and a cash balance of roughly $50 million, limiting near‑term free‑cash‑flow generation. Analysts have largely maintained a “Hold” stance, citing the need for sustained same‑store sales growth and a clearer path to profitability.
URBN Overview and Recent Performance
Urban Outfitters, Inc. (URBN) runs a multi‑brand portfolio that includes Urban Outfitters, Anthropologie, Free People, Terrain, and the Nuuly subscription service. FY2026 revenue reached $6.2 billion, with EPS of $5.06 and a healthy profit margin of 7.5 %. The stock has traded in the $71–$73 range over the past few weeks, reflecting a 2.2 % price increase on the day of the latest data.
Strengths driving momentum are: a forward P/E (price‑to‑earnings) of about 12, indicating modest valuation relative to earnings; robust ROE of 17.6 % (return on equity, a measure of profitability); a manageable debt‑to‑equity level of 43.5 %; and cash on hand of roughly $696 million. The company’s diversified brand mix and strong online sales have helped it outperform the broader retail index, leading analysts to assign “Buy” or “Outperform” ratings.
Trending AI Robots
The Tickeron Trending AI Robots page curates the best‑performing AI trading bots from a library of hundreds that cover thousands of tickers. These bots vary by strategy (trend‑following, mean‑reversion, momentum) and timeframe (intraday to long‑term), each providing performance statistics such as win‑rate, average drawdown, and risk‑adjusted return. Only bots demonstrating consistent profitability and alignment with current market conditions earn a spot in the “Trending” section, offering traders a focused entry point for algorithmic execution.
Head‑to‑Head Comparison
- Business Model: DBI is a pure‑play footwear retailer, heavily dependent on discretionary spend, whereas URBN operates a diversified lifestyle ecosystem spanning apparel, home goods, and subscription services.
- Growth Drivers: DBI hopes to revive same‑store sales through store‑right‑size initiatives; URBN leverages brand‑level innovation and a strong e‑commerce platform.
- Financial Health: URBN’s stronger balance sheet (lower leverage, higher cash) contrasts with DBI’s high debt load and negative cash flow.
- Valuation: DBI trades at a high price‑to‑sales multiple (≈0.12) with no meaningful P/E, while URBN’s P/E of ~14 suggests reasonable valuation given earnings growth.
- Risk Factors: DBI faces lease‑expiration risk and sensitivity to footwear trends; URBN contends with brand‑mix execution risk and broader macro‑economic pressures on discretionary spending.
- Market Sentiment: Recent analyst upgrades and earnings beats have lifted URBN’s momentum, whereas DBI remains under watch for a sustainable turnaround.
Tickeron AI Verdict
Based on current trend consistency, balance‑sheet strength, and earnings momentum, Tickeron’s AI algorithms would likely assign a higher probability of outperformance to URBN over DBI. URBN’s stable upward price trajectory, solid profitability, and lower leverage align with the AI’s preference for stocks that exhibit reliable trends and manageable risk. DBI, while showing signs of a margin recovery, still carries higher volatility and financial uncertainty, placing it lower on the AI’s ranking for immediate bullish positioning.
Disclaimer
“The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.” Disclaimers and Limitations
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is DBI is a StrongBuy and URBN is a StrongBuy.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
DBI’s FA Score shows that 1 FA rating(s) are green whileURBN’s FA Score has 1 green FA rating(s).
- DBI’s FA Score: 1 green, 4 red.
- URBN’s FA Score: 1 green, 4 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
DBI’s TA Score shows that 2 TA indicator(s) are bullish while URBN’s TA Score has 4 bullish TA indicator(s).
- DBI’s TA Score: 2 bullish, 8 bearish.
- URBN’s TA Score: 4 bullish, 4 bearish.
Price Growth
DBI (@Wholesale Distributors) experienced а -11.58% price change this week, while URBN (@Apparel/Footwear Retail) price change was -5.53% for the same time period.
The average weekly price growth across all stocks in the @Wholesale Distributors industry was -5.59%. For the same industry, the average monthly price growth was -1.03%, and the average quarterly price growth was +2.05%.
The average weekly price growth across all stocks in the @Apparel/Footwear Retail industry was +0.31%. For the same industry, the average monthly price growth was +9.95%, and the average quarterly price growth was +3.01%.
Reported Earning Dates
DBI is expected to report earnings on Sep 02, 2026.
URBN is expected to report earnings on Aug 25, 2026.
Industries' Descriptions
@Wholesale Distributors (-5.59% weekly)Companies in this industry handle the wholesale shipments for the manufacturer of a product. They have warehouses and distribution centers, and they ship products directly to the retailer. Digitization, increasing competition, emerging customer demand, and product innovation are some of shifts that the industry has been facing in recent times – something that is potentially creating needs/opportunities for business model revisions or transformations. Data, analytics, and technology are becoming increasingly important for whole distributors in anticipating and analyzing consumer needs, and therefore planning their business strategies accordingly. Fastenal Company, W.W. Grainger, Inc., Genuine Parts Company and Pool Corporation are some of the largest names in the business.
@Apparel/Footwear Retail (+0.31% weekly)Companies in the apparel and/or footwear retail industry sell clothing, accessories and footwear, for different age groups and genders. The industry’s product categories could range from basics, such as underwear, to luxury items. Some retailers source items from wholesalers or an apparel brand to sell in their stores; some others are licensed to make and market their own retail goods under particular brands. Several companies outsource production of clothing to developing/emerging economies where labor costs are relatively inexpensive. Apparel retail is often influenced by fashion trends, and many companies feel the need to adapt to what’s “in vogue” to retain customers and attract new ones. A major disruption in this industry has been the burgeoning trend in digital shopping – to compete with rapidly growing e-commerce, even traditional retail players are upping the ante on their online platforms. Much of the products’ performance in apparel/footwear retail is cyclical, i.e., economic boom times encourage consumer spending, while recessions induce thriftiness among people. Some large-cap U.S. apparel/footwear retail companies include TJX Companies Inc., Ross Stores, Inc., Lululemon Athletica Inc. and Burlington Stores, Inc.
| DBI | URBN | DBI / URBN | |
| Capitalization | 310M | 6.23B | 5% |
| EBITDA | 107M | 730M | 15% |
| Gain YTD | -17.002 | -3.335 | 510% |
| P/E Ratio | 27.77 | 13.99 | 199% |
| Revenue | 2.89B | 6.17B | 47% |
| Total Cash | 50.9M | 696M | 7% |
| Total Debt | 1.21B | 1.23B | 98% |
DBI | URBN | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 78 | 20 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 8 Undervalued | 82 Overvalued | |
PROFIT vs RISK RATING 1..100 | 100 | 29 | |
SMR RATING 1..100 | 92 | 50 | |
PRICE GROWTH RATING 1..100 | 40 | 47 | |
P/E GROWTH RATING 1..100 | 68 | 52 | |
SEASONALITY SCORE 1..100 | n/a | 27 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
DBI's Valuation (8) in the Apparel Or Footwear Retail industry is significantly better than the same rating for URBN (82). This means that DBI’s stock grew significantly faster than URBN’s over the last 12 months.
URBN's Profit vs Risk Rating (29) in the Apparel Or Footwear Retail industry is significantly better than the same rating for DBI (100). This means that URBN’s stock grew significantly faster than DBI’s over the last 12 months.
URBN's SMR Rating (50) in the Apparel Or Footwear Retail industry is somewhat better than the same rating for DBI (92). This means that URBN’s stock grew somewhat faster than DBI’s over the last 12 months.
DBI's Price Growth Rating (40) in the Apparel Or Footwear Retail industry is in the same range as URBN (47). This means that DBI’s stock grew similarly to URBN’s over the last 12 months.
URBN's P/E Growth Rating (52) in the Apparel Or Footwear Retail industry is in the same range as DBI (68). This means that URBN’s stock grew similarly to DBI’s over the last 12 months.
| DBI | URBN | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 88% | N/A |
| Stochastic ODDS (%) | 2 days ago 85% | 2 days ago 79% |
| Momentum ODDS (%) | 2 days ago 89% | 2 days ago 73% |
| MACD ODDS (%) | 2 days ago 80% | 2 days ago 64% |
| TrendWeek ODDS (%) | 2 days ago 82% | 2 days ago 72% |
| TrendMonth ODDS (%) | 2 days ago 79% | 2 days ago 77% |
| Advances ODDS (%) | 9 days ago 80% | 15 days ago 76% |
| Declines ODDS (%) | 7 days ago 84% | 7 days ago 66% |
| BollingerBands ODDS (%) | 2 days ago 89% | 2 days ago 76% |
| Aroon ODDS (%) | 2 days ago 84% | 2 days ago 76% |
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DBI and
Correlation & Price change
A.I.dvisor indicates that over the last year, DBI has been closely correlated with CAL. These tickers have moved in lockstep 68% of the time. This A.I.-generated data suggests there is a high statistical probability that if DBI jumps, then CAL could also see price increases.
| Ticker / NAME | Correlation To DBI | 1D Price Change % | ||
|---|---|---|---|---|
| DBI | 100% | -3.32% | ||
| CAL - DBI | 68% Closely correlated | -3.58% | ||
| DLTH - DBI | 64% Loosely correlated | -6.01% | ||
| GCO - DBI | 64% Loosely correlated | +0.34% | ||
| ZUMZ - DBI | 64% Loosely correlated | +2.45% | ||
| SHOE - DBI | 64% Loosely correlated | -0.31% | ||
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