American Eagle Outfitters Inc (AEO)vsLululemon Athletica Inc. (LULU)
AEO
American Eagle Outfitters Inc
$15.02
+3.37%
CONSUMER CYCLICAL · Cap: $2.83B
LULU
Lululemon Athletica Inc.
$98.97
+2.16%
CONSUMER CYCLICAL · Cap: $11.42B
Smart Verdict
WallStSmart Research — data-driven comparison
Lululemon Athletica Inc. generates 96% more annual revenue ($11.09B vs $5.65B). LULU leads profitability with a 12.8% profit margin vs 5.0%. LULU appears more attractively valued with a PEG of 0.77. LULU earns a higher WallStSmart Score of 62/100 (C+).
AEO
Buy51
out of 100
Grade: C-
LULU
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+9.3%
Fair Value
$26.30
Current Price
$15.02
$11.28 discount
Margin of Safety
+70.5%
Fair Value
$597.24
Current Price
$98.97
$498.27 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Safe zone — low bankruptcy risk
Reasonable price relative to book value
Attractively priced relative to earnings
Every $100 of equity generates 30 in profit
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Reasonable price relative to book value
Areas to Watch
5.0% margin — thin
Operating margin of 2.4%
Elevated debt levels
Weak financial health signals
Weak financial health signals
Revenue declined 4.3%
Earnings declined 5.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : AEO
The strongest argument for AEO centers on P/E Ratio, Altman Z-Score, Price/Book.
Bull Case : LULU
The strongest argument for LULU centers on P/E Ratio, Return on Equity, Altman Z-Score. PEG of 0.77 suggests the stock is reasonably priced for its growth.
Bear Case : AEO
The primary concerns for AEO are Profit Margin, Operating Margin, Debt/Equity. Thin 5.0% margins leave little buffer for downturns.
Bear Case : LULU
The primary concerns for LULU are Piotroski F-Score, Revenue Growth, EPS Growth.
Key Dynamics to Monitor
AEO profiles as a value stock while LULU is a declining play — different risk/reward profiles.
AEO carries more volatility with a beta of 1.31 — expect wider price swings.
AEO is growing revenue faster at 9.7% — sustainability is the question.
LULU generates stronger free cash flow (87M), providing more financial flexibility.
Bottom Line
LULU scores higher overall (62/100 vs 51/100). 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.
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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