WallStSmart

American Eagle Outfitters Inc (AEO)vsThe TJX Companies Inc (TJX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

The TJX Companies Inc generates 998% more annual revenue ($60.37B vs $5.50B). TJX leads profitability with a 9.1% profit margin vs 3.5%. TJX appears more attractively valued with a PEG of 3.23. TJX earns a higher WallStSmart Score of 56/100 (C).

AEO

Buy

52

out of 100

Grade: C-

Growth: 4.0Profit: 5.5Value: 4.7Quality: 6.3
Piotroski: 2/9Altman Z: 3.28

TJX

Buy

56

out of 100

Grade: C

Growth: 6.7Profit: 7.5Value: 7.3Quality: 6.3
Piotroski: 5/9Altman Z: 3.30
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AEOSignificantly Overvalued (-221.7%)

Margin of Safety

-221.7%

Fair Value

$7.41

Current Price

$16.87

$9.46 premium

UndervaluedFair: $7.41Overvalued
TJXUndervalued (+31.0%)

Margin of Safety

+31.0%

Fair Value

$228.38

Current Price

$154.98

$73.40 discount

UndervaluedFair: $228.38Overvalued

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
15.8x8/10

Attractively priced relative to earnings

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

TJX5 strengths · Avg: 9.0/10
Return on EquityProfitability
59.1%10/10

Every $100 of equity generates 59 in profit

Altman Z-ScoreHealth
3.3010/10

Safe zone — low bankruptcy risk

Market CapQuality
$172.48B9/10

Large-cap with strong market position

EPS GrowthGrowth
28.3%8/10

Earnings expanding 28.3% YoY

Free Cash FlowQuality
$2.63B8/10

Generating 2.6B in free cash flow

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
-7.0%2/10

Earnings declined 7.0%

TJX3 concerns · Avg: 3.3/10
P/E RatioValuation
31.8x4/10

Premium valuation, high expectations priced in

Price/BookValuation
17.1x4/10

Trading at 17.1x book value

PEG RatioValuation
3.232/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : AEO

The strongest argument for AEO centers on Altman Z-Score, P/E Ratio, Price/Book.

Bull Case : TJX

The strongest argument for TJX centers on Return on Equity, Altman Z-Score, Market Cap.

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 : TJX

The primary concerns for TJX are P/E Ratio, Price/Book, PEG Ratio.

Key Dynamics to Monitor

AEO carries more volatility with a beta of 1.35 — expect wider price swings.

AEO is growing revenue faster at 9.7% — sustainability is the question.

TJX generates stronger free cash flow (2.6B), providing more financial flexibility.

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

Bottom Line

TJX scores higher overall (56/100 vs 52/100). 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.

The TJX Companies Inc

CONSUMER CYCLICAL · APPAREL RETAIL · USA

The TJX Companies, Inc. (abbreviated TJX) is an American multinational off-price department store corporation, headquartered in Framingham, Massachusetts.

Want to dig deeper into these stocks?