American Eagle Outfitters, Inc. (AEO) vs Abercrombie & Fitch Company (ANF)

American Eagle Outfitters, Inc. and Abercrombie & Fitch Company are both Apparel Retail companies. Abercrombie & Fitch Company is the larger, with a market value of $6.5B against $3.0B — 2.1× the size. American Eagle Outfitters, Inc. trades at the lower P/E: 9.0× against 12.9×. American Eagle Outfitters, Inc. grew revenue faster over the last twelve months: 9.16% against 4.73%. Abercrombie & Fitch Company has the higher net margin (10.0% vs 5.86%) and the higher return on invested capital (62.6% vs 16.8%). Across the 22 metrics below, American Eagle Outfitters, Inc. leads on 11 and Abercrombie & Fitch Company on 11.

Valuation

Metric AEO ANF Apparel Retail median
P/E 8.99 12.91 13.40
P/S 0.52 1.26 0.31
P/B 1.70 4.90 1.73
Price to free cash flow 8.74 11.84 12.11
EV/EBITDA 4.35 7.10 7.58
EV/Sales 0.51 1.22 0.51
Earnings yield 11.12% 7.75% 5.50%
Free cash flow yield 11.44% 8.44% 3.85%

Profitability

Metric AEO ANF Apparel Retail median
Gross margin 40.54% 63.67% 41.90%
Operating margin 7.79% 13.71% 2.50%
Net margin 5.86% 10.04% 3.41%
Free cash flow margin 5.97% 10.61% 2.86%
Return on equity 20.37% 40.05% 7.71%
Return on assets 8.08% 15.54% 2.85%
Return on invested capital 16.77% 62.57% 6.41%

Growth

Metric AEO ANF Apparel Retail median
Revenue growth (TTM) 9.16% 4.73% 4.17%
EPS growth (last fiscal year) (35.12%) (2.15%) 5.51%
Revenue growth, 5-year CAGR 8.09% 7.24% 5.92%
Net income growth, 5-year CAGR 0.00% 14.02% 0.00%

Health

Metric AEO ANF Apparel Retail median
Debt to equity 0.03 0.00 0.01
Current ratio 1.59 1.41 1.53
Net debt to EBITDA (0.53) (0.90) (0.38)

Dividend

Metric AEO ANF Apparel Retail median
Dividend yield 2.78% — 1.80%
Payout ratio 0.26 — 0.21

Size

Metric AEO ANF Apparel Retail median
Market cap 3.02b 6.45b 371.52m

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