American Eagle Outfitters vs Urban Outfitters
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KIRA’s take AI analyst
I put American Eagle Outfitters and Urban Outfitters side by side, using each one’s latest annual report. Here is what stands out:
- Urban Outfitters is the larger business, with $6.2B of revenue in fiscal 2026 against $5.5B for American Eagle Outfitters.
- Urban Outfitters grew revenue faster (11.1%, against 4.1%).
- Urban Outfitters kept more of each dollar of sales as operating profit (9.8% operating margin, against 4.1%).
- Urban Outfitters turned more of its sales into free cash flow (5.1% FCF margin, against 3.5%).
- Urban Outfitters earned a higher return on the capital invested in it (23.7%, against 11.5%).
- Investors pay more for each dollar of Urban Outfitters’s earnings: a P/E of 14.1x against 9.6x for American Eagle Outfitters.
Who comes out ahead
Of the 11 measures where higher (or lower) is clearly better, how many each company leads.
American Eagle Outfitters
AEO
2/11
Gross marginShare count change
Urban Outfitters
URBN
9/11
Revenue growth5-year growthOperating marginNet marginFCF marginReturn on capitalReturn on equityPiotroski F-scoreNet debt / EBITDA
Side by side
Best in the row
| Latest fiscal year | AEO FY25 | URBN FY26 |
|---|---|---|
| Size | ||
| Market cap | $3.2B | $7.9B |
| Revenue | $5.5B | $6.2B |
| Free cash flow | $195M | $315M |
| Net income | $192M | $465M |
| Growth | ||
| Revenue growth | 4.1% | 11.1% |
| 5-year growth | 8.1% | 12.3% |
| Share count change | −10.3% | −2.8% |
| Profitability | ||
| Gross margin | 36.5% | 36.0% |
| Operating margin | 4.1% | 9.8% |
| Net margin | 3.5% | 7.5% |
| FCF margin | 3.5% | 5.1% |
| Return on capital | 11.5% | 23.7% |
| Return on equity | 11.1% | 17.6% |
| Balance sheet | ||
| Net debt | −$197M | −$696M |
| Net debt / EBITDA | −0.4x | −1.0x |
| Dividends and buybacks | $142M | $154M |
| Valuation & quality | ||
| P/E | 9.6x | 14.1x |
| Piotroski F-score | 4 | 8 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.