American Eagle Outfitters, Inc. (AEO) vs Victoria's Secret & Co. (VSXY)

American Eagle Outfitters, Inc. and Victoria's Secret & Co. are both Apparel Retail companies. Victoria's Secret & Co. is the larger, with a market value of $6.7B against $2.7B — 2.5× the size. American Eagle Outfitters, Inc. trades at the lower P/E: 8.3× against 18.2×. Victoria's Secret & Co. grew revenue faster over the last twelve months: 10.3% against 9.16%. American Eagle Outfitters, Inc. has the higher net margin (5.86% vs 5.47%) and the lower return on invested capital (16.8% vs 22.6%). Across the 21 metrics below, American Eagle Outfitters, Inc. leads on 15 and Victoria's Secret & Co. on 6.

Valuation

Metric AEO VSXY Apparel Retail median
P/E 8.29 18.17 12.56
P/S 0.48 0.96 0.35
P/B 1.57 6.31 1.57
Price to free cash flow 8.06 11.97 11.15
EV/EBITDA 4.00 9.31 7.42
EV/Sales 0.47 1.03 0.51
Earnings yield 12.06% 5.50% 5.76%
Free cash flow yield 12.40% 8.35% 4.34%

Profitability

Metric AEO VSXY Apparel Retail median
Gross margin 40.54% 39.57% 41.90%
Operating margin 7.79% 7.86% 2.50%
Net margin 5.86% 5.47% 3.41%
Free cash flow margin 5.97% 8.02% 2.86%
Return on equity 20.37% 42.93% 7.71%
Return on assets 8.08% 7.63% 2.85%
Return on invested capital 16.77% 22.56% 6.41%

Growth

Metric AEO VSXY Apparel Retail median
Revenue growth (TTM) 9.16% 10.31% 4.14%
EPS growth (last fiscal year) (35.12%) (5.85%) —
Revenue growth, 5-year CAGR 8.09% 3.90% 5.92%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric AEO VSXY Apparel Retail median
Debt to equity 0.03 0.93 0.01
Current ratio 1.59 1.36 1.54
Net debt to EBITDA (0.53) 0.90 (0.29)

Dividend

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

Size

Metric AEO VSXY Apparel Retail median
Market cap 2.69b 6.69b 358.41m

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