American Eagle Outfitters, Inc. (AEO) vs Carter's, Inc. (CRI)

American Eagle Outfitters, Inc. and Carter's, Inc. are both Apparel Retail companies. American Eagle Outfitters, Inc. is the larger, with a market value of $2.7B against $1.1B — 2.4× the size. Carter's, Inc. trades at the lower P/E: 5.9× against 8.3×. American Eagle Outfitters, Inc. grew revenue faster over the last twelve months: 9.16% against 5.17%. Carter's, Inc. has the higher net margin (6.47% vs 5.86%) and the higher return on invested capital (18.7% vs 16.8%). Both pay a dividend; Carter's, Inc. yields more (3.78% vs 2.01%). Across the 23 metrics below, Carter's, Inc. leads on 14 and American Eagle Outfitters, Inc. on 9.

Valuation

Metric AEO CRI Apparel Retail median
P/E 8.29 5.86 12.56
P/S 0.48 0.37 0.35
P/B 1.57 1.08 1.57
Price to free cash flow 8.06 8.28 11.15
EV/EBITDA 4.00 3.43 7.42
EV/Sales 0.47 0.39 0.51
Earnings yield 12.06% 17.06% 5.76%
Free cash flow yield 12.40% 12.08% 4.34%

Profitability

Metric AEO CRI Apparel Retail median
Gross margin 40.54% 48.60% 41.90%
Operating margin 7.79% 9.47% 2.50%
Net margin 5.86% 6.47% 3.41%
Free cash flow margin 5.97% 9.83% 2.86%
Return on equity 20.37% 20.50% 7.71%
Return on assets 8.08% 7.43% 2.85%
Return on invested capital 16.77% 18.72% 6.41%

Growth

Metric AEO CRI Apparel Retail median
Revenue growth (TTM) 9.16% 5.17% 4.14%
EPS growth (last fiscal year) (35.12%) (50.59%) —
Revenue growth, 5-year CAGR 8.09% (0.85%) 5.92%
Net income growth, 5-year CAGR 0.00% (3.99%) 0.00%

Health

Metric AEO CRI Apparel Retail median
Debt to equity 0.03 0.55 0.01
Current ratio 1.59 2.47 1.54
Net debt to EBITDA (0.53) 0.40 (0.29)

Dividend

Metric AEO CRI Apparel Retail median
Dividend yield 2.01% 3.78% 2.94%
Payout ratio 0.19 0.56 0.00

Size

Metric AEO CRI Apparel Retail median
Market cap 2.69b 1.11b 358.41m

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