American Eagle Outfitters Inc (AEO)vsAlibaba Group Holding Ltd (BABA)
AEO
American Eagle Outfitters Inc
$17.12
-1.44%
CONSUMER CYCLICAL · Cap: $2.85B
BABA
Alibaba Group Holding Ltd
$131.88
+1.11%
CONSUMER CYCLICAL · Cap: $321.85B
Smart Verdict
WallStSmart Research — data-driven comparison
Alibaba Group Holding Ltd generates 18229% more annual revenue ($1.02T vs $5.55B). BABA leads profitability with a 8.9% profit margin vs 3.5%. BABA appears more attractively valued with a PEG of 0.80. AEO earns a higher WallStSmart Score of 54/100 (C-).
AEO
Buy54
out of 100
Grade: C-
BABA
Buy50
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+28.9%
Fair Value
$33.55
Current Price
$17.12
$16.43 discount
Margin of Safety
+72.9%
Fair Value
$562.19
Current Price
$131.88
$430.31 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Safe zone — low bankruptcy risk
Attractively priced relative to earnings
Reasonable price relative to book value
Mega-cap, among the largest globally
Growing faster than its price suggests
Reasonable price relative to book value
Areas to Watch
3.5% margin — thin
Weak financial health signals
Expensive relative to growth rate
Earnings declined 6.5%
1.7% revenue growth
Earnings declined 70.9%
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull 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 : BABA
The strongest argument for BABA centers on Market Cap, PEG Ratio, Price/Book. PEG of 0.80 suggests the stock is reasonably priced for its growth.
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 : BABA
The primary concerns for BABA are Revenue Growth, EPS Growth, Free Cash Flow.
Key Dynamics to Monitor
AEO carries more volatility with a beta of 1.48 — expect wider price swings.
AEO is growing revenue faster at 12.9% — sustainability is the question.
AEO generates stronger free cash flow (-4M), providing more financial flexibility.
Monitor APPAREL RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
AEO scores higher overall (54/100 vs 50/100) and 12.9% revenue growth. BABA offers better value entry with a 72.9% 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.
Alibaba Group Holding Ltd
CONSUMER CYCLICAL · INTERNET RETAIL · USA
Alibaba Group Holding Limited, also known as Alibaba Group and Alibaba.com, is a Chinese multinational technology company specializing in e-commerce, retail, Internet, and technology. Founded on 28 June 1999 in Hangzhou, Zhejiang, the company provides consumer-to-consumer (C2C), business-to-consumer (B2C), and business-to-business (B2B) sales services via web portals, as well as electronic payment services, shopping search engines and cloud computing services. It owns and operates a diverse portfolio of companies around the world in numerous business sectors.
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