American Eagle Outfitters Inc (AEO)vsLululemon Athletica Inc. (LULU)
AEO
American Eagle Outfitters Inc
$16.44
-1.32%
CONSUMER CYCLICAL · Cap: $3.15B
LULU
Lululemon Athletica Inc.
$114.23
-8.56%
CONSUMER CYCLICAL · Cap: $13.49B
Smart Verdict
WallStSmart Research — data-driven comparison
Lululemon Athletica Inc. generates 98% more annual revenue ($11.20B vs $5.65B). LULU leads profitability with a 13.0% profit margin vs 5.0%. LULU appears more attractively valued with a PEG of 0.58. LULU earns a higher WallStSmart Score of 64/100 (C+).
AEO
Buy51
out of 100
Grade: C-
LULU
Buy64
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
+70.7%
Fair Value
$600.18
Current Price
$114.23
$485.95 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
Attractively priced relative to earnings
Every $100 of equity generates 30 in profit
Safe zone — low bankruptcy risk
Growing faster than its price suggests
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
4.3% revenue growth
Weak financial health signals
Earnings declined 35.0%
Comparative Analysis Report
WallStSmart ResearchBull Case : AEO
The strongest argument for AEO centers on P/E Ratio, Altman Z-Score, Price/Book.
Bull Case : LULU
The strongest argument for LULU centers on P/E Ratio, Return on Equity, Altman Z-Score. PEG of 0.58 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 : LULU
The primary concerns for LULU are Revenue Growth, Piotroski F-Score, EPS Growth.
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.
LULU generates stronger free cash flow (87M), providing more financial flexibility.
Monitor APPAREL RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LULU scores higher overall (64/100 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.
Lululemon Athletica Inc.
CONSUMER CYCLICAL · APPAREL RETAIL · USA
lululemon athletica inc. The company is headquartered in Vancouver, Canada.
Visit Website →Compare with Other APPAREL RETAIL Stocks
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