WallStSmart

American Eagle Outfitters Inc (AEO)vsUrban Outfitters Inc (URBN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Urban Outfitters Inc generates 12% more annual revenue ($6.32B vs $5.65B). URBN leads profitability with a 7.5% profit margin vs 5.0%. URBN appears more attractively valued with a PEG of 1.34. URBN earns a higher WallStSmart Score of 63/100 (C+).

AEO

Buy

51

out of 100

Grade: C-

Growth: 4.0Profit: 5.0Value: 6.0Quality: 6.0
Piotroski: 2/9Altman Z: 3.08

URBN

Buy

63

out of 100

Grade: C+

Growth: 6.0Profit: 6.5Value: 6.7Quality: 7.5
Piotroski: 6/9Altman Z: 3.32
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AEOUndervalued (+10.7%)

Margin of Safety

+10.7%

Fair Value

$26.70

Current Price

$16.44

$10.26 discount

UndervaluedFair: $26.70Overvalued
URBNUndervalued (+2.0%)

Margin of Safety

+2.0%

Fair Value

$71.98

Current Price

$71.30

$0.68 discount

UndervaluedFair: $71.98Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AEO3 strengths · Avg: 9.3/10
P/E RatioValuation
11.8x10/10

Attractively priced relative to earnings

Altman Z-ScoreHealth
3.0810/10

Safe zone — low bankruptcy risk

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

URBN3 strengths · Avg: 8.7/10
Altman Z-ScoreHealth
3.3210/10

Safe zone — low bankruptcy risk

P/E RatioValuation
14.8x8/10

Attractively priced relative to earnings

Price/BookValuation
2.3x8/10

Reasonable price relative to book value

Areas to Watch

AEO4 concerns · Avg: 3.0/10
Profit MarginProfitability
5.0%3/10

5.0% margin — thin

Operating MarginProfitability
2.4%3/10

Operating margin of 2.4%

Debt/EquityHealth
1.143/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

URBN2 concerns · Avg: 2.5/10
Profit MarginProfitability
7.5%3/10

7.5% margin — thin

Free Cash FlowQuality
$-177.76M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : AEO

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

Bull Case : URBN

The strongest argument for URBN centers on Altman Z-Score, P/E Ratio, Price/Book. Revenue growth of 11.4% demonstrates continued momentum. PEG of 1.34 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 : URBN

The primary concerns for URBN are Profit Margin, Free Cash Flow.

Key Dynamics to Monitor

AEO carries more volatility with a beta of 1.31 — expect wider price swings.

URBN is growing revenue faster at 11.4% — sustainability is the question.

AEO generates stronger free cash flow (-127M), providing more financial flexibility.

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

Bottom Line

URBN scores higher overall (63/100 vs 51/100) and 11.4% 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.

Urban Outfitters Inc

CONSUMER CYCLICAL · APPAREL RETAIL · USA

Urban Outfitters, Inc. is engaged in the retail and wholesale of general consumer products. The company is headquartered in Philadelphia, Pennsylvania.

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