American Eagle Outfitters vs Gap
AEO and GAP side by side, both in family clothing stores. Figures are trailing twelve months unless noted, from SEC filings and end-of-day prices.
How AEO and GAP compare
Gap is the larger company, worth 2.4 times as much as American Eagle Outfitters ($7.8B against $3.3B).
On earnings, Gap is cheaper: it trades at 6.7× trailing earnings, against 10.0× for American Eagle Outfitters.
American Eagle Outfitters grew revenue faster over the last twelve months (9.2% versus 1.1% for Gap).
Gap keeps more of each dollar of sales as profit, with a net margin of 8.1% compared with 5.9% at American Eagle Outfitters.
Both pay dividends: American Eagle Outfitters yields 2.5% and Gap 3.1%.
American Eagle Outfitters scores higher on the StockData Score (20 against 17 for Gap), which adds up 30 checks on valuation, growth, past performance, financial health and dividends.
Key numbers
A dot marks the better figure where higher or lower is clearly better.
| Metric | AEO | GAP |
|---|---|---|
| Size and price | ||
| Market cap | $3.3B | $7.8B |
| Share price | $19.61 | $22.32 |
| Change, 1 year | 15.5% | −5.8% |
| Change, 5 years | −26.2% | −10.3% |
| Beta (5Y) | 1.18 | 1.46 |
| Employees | 45K | 79K |
| StockData Score | ||
| Total score | 20 (better) | 17 |
| Valuation score | 6 | 6 |
| Growth score | 3 (better) | 1 |
| Performance score | 3 (better) | 2 |
| Health score | 5 | 5 |
| Dividend score | 3 | 3 |
| Valuation | ||
| P/E | 10.0× | 6.7× (better) |
| P/S | 0.6× | 0.5× (better) |
| P/B | 1.9× (better) | 2.0× |
| EV/EBITDA | 4.8× | 3.1× (better) |
| P/FCF | 9.6× | 8.2× (better) |
| PEG | 0.52 | – |
| FCF yield | 10.5% | 12.2% (better) |
| Fair value | $25.47 | $38.92 |
| Margin of safety | 23.0% | 42.6% (better) |
| Growth | ||
| Revenue growth (TTM) | 9.2% (better) | 1.1% |
| Revenue growth, 5Y average | 8.1% (better) | 2.2% |
| Net income growth (TTM) | 70.9% (better) | 40.3% |
| EPS growth (TTM) | 86.7% (better) | 43.3% |
| Profitability | ||
| Gross margin | 40.5% | 43.3% (better) |
| Operating margin | 7.8% | 11.0% (better) |
| Net margin | 5.9% | 8.1% (better) |
| FCF margin | 6.0% | 6.2% (better) |
| Return on equity | 20.4% | 33.8% (better) |
| Return on invested capital | 20.5% | 45.2% (better) |
| Financial health | ||
| Debt / equity | 0.03 (better) | 0.38 |
| Net debt / EBITDA | −0.14 | −0.45 |
| Interest coverage | – | 18.1× |
| Current ratio | 1.59 | 1.82 (better) |
| Altman Z-score | 3.49 (better) | 2.82 |
| Piotroski F-score | 5 | 6 (better) |
| Dividends and buybacks | ||
| Dividend yield | 2.5% | 3.1% (better) |
| Payout ratio | 25.0% | 20.0% |
| Years of dividend growth | 0 | 1 (better) |
| Dividend growth, 5Y average | 29.5% (better) | 22.2% |
| Buyback yield | 2.4% | 7.7% (better) |
| Shareholder yield | 5.0% | 10.8% (better) |
| Ownership | ||
| Held by institutions | 100% | 62.8% |
| Held by insiders | 9.0% | 40.9% |
| Insider net buying, 12 months | −$39.1M (better) | −$60.1M |
| Short interest, % of float | 11.0% | 12.4% |
Go deeper
- AEO stock overview
- AEO income statement
- AEO valuation and score
- GAP stock overview
- GAP income statement
- GAP valuation and score
Other comparisons
For information only, not investment advice. Check the source filings before relying on any figure.