American Eagle Outfitters Inc (AEO)vsThe TJX Companies Inc (TJX)
AEO
American Eagle Outfitters Inc
$19.46
+0.21%
CONSUMER CYCLICAL · Cap: $3.01B
TJX
The TJX Companies Inc
$138.40
-1.29%
CONSUMER CYCLICAL · Cap: $162.06B
Smart Verdict
WallStSmart Research — data-driven comparison
The TJX Companies Inc generates 985% more annual revenue ($62.36B vs $5.75B). TJX leads profitability with a 9.7% profit margin vs 5.9%. TJX appears more attractively valued with a PEG of 2.57. AEO earns a higher WallStSmart Score of 65/100 (B-).
AEO
Strong Buy65
out of 100
Grade: B-
TJX
Buy58
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
-3.3%
Fair Value
$140.47
Current Price
$138.40
$2.07 premium
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
Every $100 of equity generates 57 in profit
Safe zone — low bankruptcy risk
Large-cap with strong market position
Earnings expanding 23.6% YoY
Generating 1.7B in free cash flow
Areas to Watch
5.9% margin — thin
Operating margin of 2.1%
Elevated debt levels
Weak financial health signals
Moderate valuation
Trading at 14.3x book value
Elevated debt levels
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : AEO
The strongest argument for AEO centers on P/E Ratio, EPS Growth, Altman Z-Score.
Bull Case : TJX
The strongest argument for TJX centers on Return on Equity, Altman Z-Score, Market Cap.
Bear Case : AEO
The primary concerns for AEO are Profit Margin, Operating Margin, Debt/Equity.
Bear Case : TJX
The primary concerns for TJX are P/E Ratio, Price/Book, Debt/Equity.
Key Dynamics to Monitor
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.
TJX generates stronger free cash flow (1.7B), providing more financial flexibility.
Monitor APPAREL RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
AEO scores higher overall (65/100 vs 58/100). 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.
The TJX Companies Inc
CONSUMER CYCLICAL · APPAREL RETAIL · USA
The TJX Companies, Inc. (abbreviated TJX) is an American multinational off-price department store corporation, headquartered in Framingham, Massachusetts.
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