American Eagle Outfitters Inc (AEO)vsRoss Stores Inc (ROST)
AEO
American Eagle Outfitters Inc
$15.02
+3.37%
CONSUMER CYCLICAL · Cap: $2.83B
ROST
Ross Stores Inc
$230.74
+2.33%
CONSUMER CYCLICAL · Cap: $74.02B
Smart Verdict
WallStSmart Research — data-driven comparison
Ross Stores Inc generates 334% more annual revenue ($24.51B vs $5.65B). ROST leads profitability with a 10.8% profit margin vs 5.0%. ROST appears more attractively valued with a PEG of 2.42. ROST earns a higher WallStSmart Score of 64/100 (C+).
AEO
Buy51
out of 100
Grade: C-
ROST
Buy64
out of 100
Grade: C+
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
-4.8%
Fair Value
$183.73
Current Price
$230.74
$47.01 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
Every $100 of equity generates 39 in profit
Earnings expanding 70.5% YoY
Safe zone — low bankruptcy risk
Large-cap with strong market position
Areas to Watch
5.0% margin — thin
Operating margin of 2.4%
Elevated debt levels
Weak financial health signals
Expensive relative to growth rate
Moderate valuation
Trading at 10.9x 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 : ROST
The strongest argument for ROST centers on Return on Equity, EPS Growth, Altman Z-Score. Revenue growth of 13.3% demonstrates continued momentum.
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 : ROST
The primary concerns for ROST are PEG Ratio, P/E Ratio, Price/Book.
Key Dynamics to Monitor
AEO carries more volatility with a beta of 1.31 — expect wider price swings.
ROST is growing revenue faster at 13.3% — sustainability is the question.
ROST generates stronger free cash flow (624M), providing more financial flexibility.
Monitor APPAREL RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ROST scores higher overall (64/100 vs 51/100) and 13.3% 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.
Ross Stores Inc
CONSUMER CYCLICAL · APPAREL RETAIL · USA
Ross Stores, Inc., operating under the brand name Ross Dress for Less, is an American chain of discount department stores headquartered in Dublin, California.
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