American Eagle Outfitters, Inc. (AEO) vs Urban Outfitters, Inc. (URBN)

American Eagle Outfitters, Inc. and Urban Outfitters, Inc. are both Apparel Retail companies. Urban Outfitters, Inc. is the larger, with a market value of $6.4B against $2.7B — 2.4× the size. American Eagle Outfitters, Inc. trades at the lower P/E: 8.3× against 11.6×. Urban Outfitters, Inc. grew revenue faster over the last twelve months: 11.0% against 9.16%. Urban Outfitters, Inc. has the higher net margin (8.79% vs 5.86%) and the higher return on invested capital (21.4% vs 16.8%). Across the 22 metrics below, American Eagle Outfitters, Inc. leads on 11 and Urban Outfitters, Inc. on 11.

Valuation

Metric AEO URBN Apparel Retail median
P/E 8.29 11.59 12.56
P/S 0.48 1.00 0.35
P/B 1.57 2.26 1.57
Price to free cash flow 8.06 21.86 11.15
EV/EBITDA 4.00 7.82 7.42
EV/Sales 0.47 1.05 0.51
Earnings yield 12.06% 8.63% 5.76%
Free cash flow yield 12.40% 4.58% 4.34%

Profitability

Metric AEO URBN Apparel Retail median
Gross margin 40.54% 37.48% 41.90%
Operating margin 7.79% 11.30% 2.50%
Net margin 5.86% 8.79% 3.41%
Free cash flow margin 5.97% 4.56% 2.86%
Return on equity 20.37% 20.94% 7.71%
Return on assets 8.08% 11.57% 2.85%
Return on invested capital 16.77% 21.38% 6.41%

Growth

Metric AEO URBN Apparel Retail median
Revenue growth (TTM) 9.16% 11.01% 4.14%
EPS growth (last fiscal year) (35.12%) 18.78% —
Revenue growth, 5-year CAGR 8.09% 12.31% 5.92%
Net income growth, 5-year CAGR 0.00% 227.39% 0.00%

Health

Metric AEO URBN Apparel Retail median
Debt to equity 0.03 0.00 0.01
Current ratio 1.59 1.58 1.54
Net debt to EBITDA (0.53) (0.95) (0.29)

Dividend

Metric AEO URBN Apparel Retail median
Dividend yield 2.01% — 2.94%
Payout ratio 0.19 0.00 0.00

Size

Metric AEO URBN Apparel Retail median
Market cap 2.69b 6.41b 358.41m

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