American Eagle Outfitters Inc (AEO)vsUrban Outfitters Inc (URBN)
AEO
American Eagle Outfitters Inc
$15.02
+3.37%
CONSUMER CYCLICAL · Cap: $2.83B
URBN
Urban Outfitters Inc
$78.58
+3.94%
CONSUMER CYCLICAL · Cap: $6.80B
Smart Verdict
WallStSmart Research — data-driven comparison
Urban Outfitters Inc generates 15% more annual revenue ($6.47B vs $5.65B). URBN leads profitability with a 8.8% profit margin vs 5.0%. URBN appears more attractively valued with a PEG of 1.35. URBN earns a higher WallStSmart Score of 71/100 (B).
AEO
Buy51
out of 100
Grade: C-
URBN
Strong Buy71
out of 100
Grade: B
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
+4.0%
Fair Value
$73.45
Current Price
$78.58
$5.13 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
Earnings expanding 75.9% YoY
Safe zone — low bankruptcy risk
Attractively priced relative to earnings
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
No major concerns identified
Comparative Analysis Report
WallStSmart ResearchBull 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 EPS Growth, Altman Z-Score, P/E Ratio. Revenue growth of 10.4% demonstrates continued momentum. PEG of 1.35 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
No major red flags identified for URBN, but monitor valuation.
Key Dynamics to Monitor
AEO carries more volatility with a beta of 1.31 — expect wider price swings.
URBN is growing revenue faster at 10.4% — sustainability is the question.
URBN generates stronger free cash flow (301M), providing more financial flexibility.
Monitor APPAREL RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
URBN scores higher overall (71/100 vs 51/100) and 10.4% revenue growth. Both earn "Strong 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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