American Eagle Outfitters Inc (AEO)vsLululemon Athletica Inc. (LULU)
AEO
American Eagle Outfitters Inc
$16.87
-2.03%
CONSUMER CYCLICAL · Cap: $2.92B
LULU
Lululemon Athletica Inc.
$162.82
-1.66%
CONSUMER CYCLICAL · Cap: $19.10B
Smart Verdict
WallStSmart Research — data-driven comparison
Lululemon Athletica Inc. generates 102% more annual revenue ($11.10B vs $5.50B). LULU leads profitability with a 14.2% profit margin vs 3.5%. LULU appears more attractively valued with a PEG of 0.91. LULU earns a higher WallStSmart Score of 65/100 (B-).
AEO
Buy52
out of 100
Grade: C-
LULU
Strong Buy65
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-221.7%
Fair Value
$7.41
Current Price
$16.87
$9.46 premium
Margin of Safety
-82.8%
Fair Value
$96.22
Current Price
$162.82
$66.60 premium
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
Attractively priced relative to earnings
Every $100 of equity generates 34 in profit
Revenue surging 80.0% year-over-year
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Strong operational efficiency at 22.3%
Areas to Watch
3.5% margin — thin
Weak financial health signals
Expensive relative to growth rate
Earnings declined 7.0%
Weak financial health signals
Earnings declined 18.5%
Comparative Analysis Report
WallStSmart ResearchBull Case : AEO
The strongest argument for AEO centers on Altman Z-Score, P/E Ratio, Price/Book.
Bull Case : LULU
The strongest argument for LULU centers on P/E Ratio, Return on Equity, Revenue Growth. Revenue growth of 80.0% demonstrates continued momentum. PEG of 0.91 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 : LULU
The primary concerns for LULU are Piotroski F-Score, EPS Growth.
Key Dynamics to Monitor
AEO profiles as a value stock while LULU is a growth play — different risk/reward profiles.
AEO carries more volatility with a beta of 1.35 — expect wider price swings.
LULU is growing revenue faster at 80.0% — sustainability is the question.
LULU generates stronger free cash flow (960M), providing more financial flexibility.
Bottom Line
LULU scores higher overall (65/100 vs 52/100) and 80.0% revenue growth. Both earn "Strong 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.
Lululemon Athletica Inc.
CONSUMER CYCLICAL · APPAREL RETAIL · USA
lululemon athletica inc. The company is headquartered in Vancouver, Canada.
Visit Website →Compare with Other APPAREL RETAIL Stocks
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