American Eagle Outfitters, Inc. (AEO) vs lululemon athletica inc. (LULU)

American Eagle Outfitters, Inc. and lululemon athletica inc. are both Apparel Retail companies. lululemon athletica inc. is the larger, with a market value of $11.5B against $3.0B — 3.8× the size. lululemon athletica inc. trades at the lower P/E: 8.0× against 9.0×. American Eagle Outfitters, Inc. grew revenue faster over the last twelve months: 9.16% against 1.74%. lululemon athletica inc. has the higher net margin (12.8% vs 5.86%) and the higher return on invested capital (36.4% vs 16.8%). Across the 22 metrics below, lululemon athletica inc. leads on 18 and American Eagle Outfitters, Inc. on 4.

Valuation

Metric AEO LULU Apparel Retail median
P/E 8.99 7.95 13.40
P/S 0.52 0.99 0.31
P/B 1.70 2.29 1.73
Price to free cash flow 8.74 8.09 12.11
EV/EBITDA 4.35 3.84 7.58
EV/Sales 0.51 0.87 0.51
Earnings yield 11.12% 12.57% 5.50%
Free cash flow yield 11.44% 12.35% 3.85%

Profitability

Metric AEO LULU Apparel Retail median
Gross margin 40.54% 56.11% 41.90%
Operating margin 7.79% 17.84% 2.50%
Net margin 5.86% 12.78% 3.41%
Free cash flow margin 5.97% 12.21% 2.86%
Return on equity 20.37% 30.90% 7.71%
Return on assets 8.08% 17.72% 2.85%
Return on invested capital 16.77% 36.36% 6.41%

Growth

Metric AEO LULU Apparel Retail median
Revenue growth (TTM) 9.16% 1.74% 4.17%
EPS growth (last fiscal year) (35.12%) (9.43%) 5.51%
Revenue growth, 5-year CAGR 8.09% 20.33% 5.92%
Net income growth, 5-year CAGR 0.00% 21.81% 0.00%

Health

Metric AEO LULU Apparel Retail median
Debt to equity 0.03 0.00 0.01
Current ratio 1.59 2.19 1.53
Net debt to EBITDA (0.53) (0.67) (0.38)

Dividend

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

Size

Metric AEO LULU Apparel Retail median
Market cap 3.02b 11.48b 371.52m

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