U.S. Markets closed

How Does American Eagle Outfitters Compare to Its Peers?

Gabriel Kane

American Eagle Outfitters Reports Strong Fiscal 3Q15 Results

(Continued from Prior Part)

American Eagle Outfitters and its peers

In this article, we’ll compare American Eagle Outfitters to its peers.

  • The PE (price-to-earnings) ratios of American Eagle Outfitters (AEO), The Gap (GPS), Urban Outfitters (URBN), and Guess? (GES) are 22.0x, 10.8x, 12.5x, and 19.2x, respectively, as of December 2, 2015.

  • The PBV (price-to-book value) ratios of American Eagle Outfitters, The Gap, Urban Outfitters, Abercrombie & Fitch (ANF), and Guess? are 2.7x, 4.1x, 2.4x, 1.4x, and 1.6x, respectively.

Thus, American Eagle Outfitters has outperformed its peers based on PE and PBV.

ETFs that invest in American Eagle Outfitters

The PowerShares Dynamic Retail ETF (PMR) invests 2.5% of its holdings in AEO. The ETF tracks a multifactor, tiered, equal-weighted index of US retail stocks.

The SPDR MFS Systematic Value Equity ETF (SYV) invests 1.7% of its holdings in AEO. The ETF holds large-cap US stocks that its manager, Massachusetts Financial Services, believes are undervalued based on fundamental and quantitative analysis.

The SPDR S&P Retail ETF (XRT) invests 1.0% of its holdings in AEO. The ETF tracks a broad-based, equal-weighted index of stocks in the US retail industry.

American Eagle Outfitters and its ETFs

Now let’s look at a comparison of American Eagle Outfitters and the ETFs that invest in it:

  • The year-to-date price movements of American Eagle Outfitters, PMR, SYV, and XRT are 16.5%, -2.7%, 2.1%, and -6.0%, respectively.
  • The PE ratios of American Eagle Outfitters, PMR, SYV, and XRT are 22.0x, 18.3x, 12.0x, and 24.9x, respectively.
  • The PBV ratios of American Eagle Outfitters, PMR, SYV, and XRT are 2.7x, 4.1x, 1.6x, and 3.0x, respectively.

According to the above findings, AEO’s ETFs have outperformed it based on PBV. However, the company is ahead of its ETFs based on price movement and PE.

Browse this series on Market Realist: