American Eagle Outfitters Inc (AEO)vsRoss Stores Inc (ROST)
AEO
American Eagle Outfitters Inc
$16.44
-1.32%
CONSUMER CYCLICAL · Cap: $3.15B
ROST
Ross Stores Inc
$230.37
-1.15%
CONSUMER CYCLICAL · Cap: $72.39B
Smart Verdict
WallStSmart Research — data-driven comparison
Ross Stores Inc generates 321% more annual revenue ($23.78B vs $5.65B). ROST leads profitability with a 9.7% profit margin vs 5.0%. ROST appears more attractively valued with a PEG of 2.72. ROST earns a higher WallStSmart Score of 64/100 (C+).
AEO
Buy51
out of 100
Grade: C-
ROST
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+10.7%
Fair Value
$26.70
Current Price
$16.44
$10.26 discount
Margin of Safety
-8.9%
Fair Value
$176.80
Current Price
$230.37
$53.57 premium
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
Every $100 of equity generates 37 in profit
Safe zone — low bankruptcy risk
Large-cap with strong market position
Revenue surging 20.6% year-over-year
Earnings expanding 37.4% YoY
Areas to Watch
5.0% margin — thin
Operating margin of 2.4%
Elevated debt levels
Weak financial health signals
Premium valuation, high expectations priced in
Trading at 12.0x book value
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : AEO
The strongest argument for AEO centers on P/E Ratio, Altman Z-Score, Price/Book.
Bull Case : ROST
The strongest argument for ROST centers on Return on Equity, Altman Z-Score, Market Cap. Revenue growth of 20.6% demonstrates continued momentum.
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 : ROST
The primary concerns for ROST are P/E Ratio, Price/Book, PEG Ratio.
Key Dynamics to Monitor
AEO profiles as a value stock while ROST is a growth play — different risk/reward profiles.
AEO carries more volatility with a beta of 1.31 — expect wider price swings.
ROST is growing revenue faster at 20.6% — sustainability is the question.
ROST generates stronger free cash flow (627M), providing more financial flexibility.
Bottom Line
ROST scores higher overall (64/100 vs 51/100) and 20.6% revenue growth. 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.
Ross Stores Inc
CONSUMER CYCLICAL · APPAREL RETAIL · USA
Ross Stores, Inc., operating under the brand name Ross Dress for Less, is an American chain of discount department stores headquartered in Dublin, California.
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