American Eagle Outfitters Inc (AEO)vsThe Home Depot Inc (HD)
AEO
American Eagle Outfitters Inc
$16.44
-1.32%
CONSUMER CYCLICAL · Cap: $3.15B
HD
The Home Depot Inc
$310.78
+0.73%
CONSUMER CYCLICAL · Cap: $310.62B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 2847% more annual revenue ($166.59B vs $5.65B). HD leads profitability with a 8.4% profit margin vs 5.0%. HD appears more attractively valued with a PEG of 1.76. HD earns a higher WallStSmart Score of 54/100 (C-).
AEO
Buy51
out of 100
Grade: C-
HD
Buy54
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
-46.5%
Fair Value
$212.07
Current Price
$310.78
$98.71 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
Mega-cap, among the largest globally
Every $100 of equity generates 101 in profit
Safe zone — low bankruptcy risk
Generating 5.2B in free cash flow
Areas to Watch
5.0% margin — thin
Operating margin of 2.4%
Elevated debt levels
Weak financial health signals
Expensive relative to growth rate
4.8% revenue growth
Weak financial health signals
Trading at 22.3x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : AEO
The strongest argument for AEO centers on P/E Ratio, Altman Z-Score, Price/Book.
Bull Case : HD
The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.
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 : HD
The primary concerns for HD are PEG Ratio, Revenue Growth, Piotroski F-Score. Debt-to-equity of 4.18 is elevated, increasing financial risk.
Key Dynamics to Monitor
AEO carries more volatility with a beta of 1.31 — expect wider price swings.
AEO is growing revenue faster at 9.7% — sustainability is the question.
HD generates stronger free cash flow (5.2B), providing more financial flexibility.
Monitor APPAREL RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
HD scores higher overall (54/100 vs 51/100). 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 Home Depot Inc
CONSUMER CYCLICAL · HOME IMPROVEMENT RETAIL · USA
The Home Depot, Inc., commonly known as Home Depot, is the largest home improvement retailer in the United States, supplying tools, construction products, and services. The company is headquartered in incorporated Cobb County, Georgia, with an Atlanta mailing address.
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