American Eagle Outfitters Inc (AEO)vsLululemon Athletica Inc. (LULU)
AEO
American Eagle Outfitters Inc
$19.46
+0.21%
CONSUMER CYCLICAL · Cap: $3.01B
LULU
Lululemon Athletica Inc.
$105.22
+0.60%
CONSUMER CYCLICAL · Cap: $11.25B
Smart Verdict
WallStSmart Research — data-driven comparison
Lululemon Athletica Inc. generates 93% more annual revenue ($11.09B vs $5.75B). LULU leads profitability with a 12.8% profit margin vs 5.9%. LULU appears more attractively valued with a PEG of 1.13. AEO earns a higher WallStSmart Score of 65/100 (B-).
AEO
Strong Buy65
out of 100
Grade: B-
LULU
Buy60
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+10.1%
Fair Value
$26.51
Current Price
$19.46
$7.05 discount
Margin of Safety
+70.2%
Fair Value
$589.81
Current Price
$105.22
$484.59 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Earnings expanding 75.6% YoY
Safe zone — low bankruptcy risk
Reasonable price relative to book value
Attractively priced relative to earnings
Safe zone — low bankruptcy risk
Every $100 of equity generates 30 in profit
Reasonable price relative to book value
Areas to Watch
5.9% margin — thin
Operating margin of 2.1%
Elevated debt levels
Weak financial health signals
Weak financial health signals
Revenue declined 4.3%
Earnings declined 5.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : AEO
The strongest argument for AEO centers on P/E Ratio, EPS Growth, Altman Z-Score.
Bull Case : LULU
The strongest argument for LULU centers on P/E Ratio, Altman Z-Score, Return on Equity. PEG of 1.13 suggests the stock is reasonably priced for its growth.
Bear Case : AEO
The primary concerns for AEO are Profit Margin, Operating Margin, Debt/Equity.
Bear Case : LULU
The primary concerns for LULU are Piotroski F-Score, Revenue Growth, EPS Growth.
Key Dynamics to Monitor
AEO profiles as a value stock while LULU is a declining play — different risk/reward profiles.
AEO carries more volatility with a beta of 1.26 — expect wider price swings.
AEO is growing revenue faster at 7.5% — sustainability is the question.
LULU generates stronger free cash flow (225M), providing more financial flexibility.
Bottom Line
AEO scores higher overall (65/100 vs 60/100). LULU offers better value entry with a 70.2% margin of safety. 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.
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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