Is Abercrombie & Fitch cheap?

If you're a fan of Jim Cramer's philosophy of buying best of breed companies, Abercrombie & Fitch (NYSE: ANF) is definitely the teen retailer for you.

Interestingly, Abercrombie might also be a good stock pick if you like to buy what's cheap. At under 15 times earnings, it's cheaper than Aeropostale (NYSE: ARO), a much weaker brand far more vulnerable to price competition. Abercrombie has actually convinced young people that spending $29.50 on a t-shirt is normal.

In addition, the company's ability to establish Hollister into a major teen-oriented brand out of thin air -- the company was only founded in 2000 -- shows a level of depth and creativity lacking at other firms. Abercrombie shareholders are getting not just a strong brand but a management that clearly has an understanding of what works in marketing and an ability to translate that into success outside of the flagship.

And there's more. According to Barron's, "Right now, the most promising development at Abercrombie may be its international expansion, still in early stages. The company's Canadian stores are hugely popular, generating three times the revenue and profits of the average U.S. counterparts. Its first London store, opened last March, has been an instant hit, with sales per square foot comparable to those at the company's vast and thriving Fifth Avenue flagship in Manhattan."

With international sales at just 3% of total sales, compare that with 20% for the fully-matured Gap (NYSE: GPS).

Take a look at this stock -- it's pretty rare that the best of breed is trading at a discount to the wannabes.