WallStSmart

American Eagle Outfitters Inc (AEO)vsAmazon.com Inc (AMZN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Amazon.com Inc generates 12824% more annual revenue ($716.92B vs $5.55B). AMZN leads profitability with a 10.8% profit margin vs 3.5%. AMZN appears more attractively valued with a PEG of 1.90. AMZN earns a higher WallStSmart Score of 59/100 (C).

AEO

Buy

54

out of 100

Grade: C-

Growth: 4.0Profit: 5.5Value: 6.0Quality: 6.3
Piotroski: 2/9Altman Z: 3.28

AMZN

Buy

59

out of 100

Grade: C

Growth: 6.7Profit: 6.5Value: 3.3Quality: 6.0
Piotroski: 3/9Altman Z: 2.33
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AEOUndervalued (+28.9%)

Margin of Safety

+28.9%

Fair Value

$33.55

Current Price

$17.12

$16.43 discount

UndervaluedFair: $33.55Overvalued
AMZNSignificantly Overvalued (-66.2%)

Margin of Safety

-66.2%

Fair Value

$159.49

Current Price

$265.06

$105.57 premium

UndervaluedFair: $159.49Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AEO3 strengths · Avg: 8.7/10
Altman Z-ScoreHealth
3.2810/10

Safe zone — low bankruptcy risk

P/E RatioValuation
15.7x8/10

Attractively priced relative to earnings

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

AMZN3 strengths · Avg: 9.7/10
Market CapQuality
$2.85T10/10

Mega-cap, among the largest globally

Free Cash FlowQuality
$14.94B10/10

Generating 14.9B in free cash flow

Return on EquityProfitability
22.3%9/10

Every $100 of equity generates 22 in profit

Areas to Watch

AEO4 concerns · Avg: 2.5/10
Profit MarginProfitability
3.5%3/10

3.5% margin — thin

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
3.342/10

Expensive relative to growth rate

EPS GrowthGrowth
-6.5%2/10

Earnings declined 6.5%

AMZN3 concerns · Avg: 3.7/10
PEG RatioValuation
1.904/10

Expensive relative to growth rate

P/E RatioValuation
31.7x4/10

Premium valuation, high expectations priced in

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : AEO

The strongest argument for AEO centers on Altman Z-Score, P/E Ratio, Price/Book. Revenue growth of 12.9% demonstrates continued momentum.

Bull Case : AMZN

The strongest argument for AMZN centers on Market Cap, Free Cash Flow, Return on Equity. Revenue growth of 13.6% demonstrates continued momentum.

Bear Case : AEO

The primary concerns for AEO are Profit Margin, Piotroski F-Score, PEG Ratio. Thin 3.5% margins leave little buffer for downturns.

Bear Case : AMZN

The primary concerns for AMZN are PEG Ratio, P/E Ratio, Piotroski F-Score.

Key Dynamics to Monitor

AEO carries more volatility with a beta of 1.48 — expect wider price swings.

AMZN is growing revenue faster at 13.6% — sustainability is the question.

AMZN generates stronger free cash flow (14.9B), providing more financial flexibility.

Monitor APPAREL RETAIL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

AMZN scores higher overall (59/100 vs 54/100) and 13.6% revenue growth. AEO offers better value entry with a 28.9% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

American Eagle Outfitters Inc

CONSUMER CYCLICAL · APPAREL RETAIL · USA

American Eagle Outfitters, Inc. is a specialty retailer offering clothing, accessories, and personal care products under the American Eagle and Aerie brand names. The company is headquartered in Pittsburgh, Pennsylvania.

Amazon.com Inc

CONSUMER CYCLICAL · INTERNET RETAIL · USA

Amazon.com, Inc. is an American multinational technology company which focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. It is one of the Big Five companies in the U.S. information technology industry, along with Google, Apple, Microsoft, and Facebook. The company has been referred to as one of the most influential economic and cultural forces in the world, as well as the world's most valuable brand.

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