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 ($6.17B vs $5.50B). URBN leads profitability with a 7.5% profit margin vs 3.5%. URBN appears more attractively valued with a PEG of 1.03. URBN earns a higher WallStSmart Score of 60/100 (C).

AEO

Buy

52

out of 100

Grade: C-

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

URBN

Buy

60

out of 100

Grade: C

Growth: 4.7Profit: 6.0Value: 7.3Quality: 6.8
Piotroski: 5/9Altman Z: 3.41
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
URBNSignificantly Overvalued (-110.8%)

Margin of Safety

-110.8%

Fair Value

$33.46

Current Price

$61.75

$28.29 premium

UndervaluedFair: $33.46Overvalued

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

URBN3 strengths · Avg: 8.7/10
Altman Z-ScoreHealth
3.4110/10

Safe zone — low bankruptcy risk

P/E RatioValuation
12.9x8/10

Attractively priced relative to earnings

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

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%

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

7.5% margin — thin

EPS GrowthGrowth
-17.4%2/10

Earnings declined 17.4%

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 : URBN

The strongest argument for URBN centers on Altman Z-Score, P/E Ratio, Price/Book. Revenue growth of 10.1% demonstrates continued momentum. PEG of 1.03 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 : URBN

The primary concerns for URBN are Profit Margin, EPS Growth.

Key Dynamics to Monitor

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

URBN is growing revenue faster at 10.1% — sustainability is the question.

URBN generates stronger free cash flow (217M), providing more financial flexibility.

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

Bottom Line

URBN scores higher overall (60/100 vs 52/100) and 10.1% 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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