AEO vs. GAP
AEO (American Eagle Outfitters, Inc.) and GAP (The Gap, Inc.) are both stocks. Both operate in the Apparel Retail industry within the Consumer Cyclical sector. Over the past 10 years, AEO returned 2.34%/yr vs 1.63%/yr for GAP. Their 0.47 correlation means their historical movements had little consistent relationship.
Performance
AEO vs. GAP - Performance Comparison
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Returns By Period
In the year-to-date period, AEO achieves a -33.61% return, which is significantly lower than GAP's -19.74% return. Over the past 10 years, AEO has outperformed GAP with an annualized return of 2.34%, while GAP has yielded a comparatively lower 1.63% annualized return.
AEO
- 1D
- -0.75%
- 1M
- 5.16%
- 6M
- -25.24%
- YTD
- -33.61%
- 1Y
- 64.35%
- 3Y*
- 8.60%
- 5Y*
- -10.47%
- 10Y*
- 2.34%
- ALL TIME*
- 12.14%
GAP
- 1D
- -1.42%
- 1M
- 5.33%
- 6M
- -27.02%
- YTD
- -19.74%
- 1Y
- 9.92%
- 3Y*
- 27.64%
- 5Y*
- -3.45%
- 10Y*
- 1.63%
- ALL TIME*
- 7.26%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $66.40M | $74.01M | $86.53M | |
| $119.88M | $136.69M | $172.39M |
AEO vs. GAP - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
AEO American Eagle Outfitters, Inc. | -33.61% | 64.66% | -19.34% | 54.86% | -43.44% | 29.76% | 38.82% | -22.10% | 5.50% | 28.48% |
GAP The Gap, Inc. | -19.74% | 11.74% | 16.14% | 96.66% | -32.64% | -11.11% | 15.73% | -28.11% | -21.95% | 56.05% |
Correlation
The correlation between AEO and GAP is 0.56, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.56 |
Correlation (3Y) Balances recent behavior with more history. | 0.54 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.62 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.66 |
Correlation (All Time) Calculated using the full available price history since Apr 14, 1994 | 0.47 |
The correlation between AEO and GAP shifts across timeframes, from 0.47 (all time) to 0.66 (10 years), reflecting how their relationship changes across market environments.
Fundamentals
AEO:
$2.88B
GAP:
$7.23B
AEO:
$1.62
GAP:
$2.53
AEO:
10.61
GAP:
7.94
AEO:
2.70
GAP:
0.24
AEO:
0.53
GAP:
0.50
AEO:
1.80
GAP:
2.08
AEO:
$5.60B
GAP:
$15.40B
AEO:
$2.00B
GAP:
$6.24B
AEO:
$662.21M
GAP:
$1.71B
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Return for Risk
AEO vs. GAP — Risk / Return Rank
AEO
GAP
AEO vs. GAP - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for American Eagle Outfitters, Inc. (AEO) and The Gap, Inc. (GAP). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| AEO | GAP | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.77 | ||
| Sortino ratioReturn per unit of downside risk | +1.45 | ||
| Omega ratioGain probability vs. loss probability | 1.24 | 1.07 | +0.17 |
| Calmar ratioReturn relative to maximum drawdown | 1.37 | 0.18 | +1.19 |
| Martin ratioReturn relative to average drawdown | 2.45 | 0.41 | +2.04 |
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Drawdowns
AEO vs. GAP - Drawdown Comparison
The maximum AEO drawdown since its inception was -80.67%, smaller than the maximum GAP drawdown of -85.61%. Use the drawdown chart below to compare losses from any high point for AEO and GAP.
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Drawdown Indicators
| AEO | GAP | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -80.67% | -85.61% | +4.94% |
Max Drawdown (1Y)Largest decline over 1 year | -46.69% | -35.97% | -10.72% |
Max Drawdown (3Y)Largest decline over 3 years | -63.13% | -38.00% | -25.13% |
Max Drawdown (5Y)Largest decline over 5 years | -71.49% | -73.39% | +1.90% |
Max Drawdown (10Y)Largest decline over 10 years | -75.67% | -83.13% | +7.46% |
Current DrawdownCurrent decline from peak | -47.36% | -35.23% | -12.13% |
Average DrawdownAverage peak-to-trough decline | -37.93% | -40.90% | +2.97% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 26.01% | 15.70% | +10.31% |
Volatility
AEO vs. GAP - Volatility Comparison
American Eagle Outfitters, Inc. (AEO) has a higher volatility of 14.20% compared to The Gap, Inc. (GAP) at 9.41%. This indicates that AEO's price experiences larger fluctuations and is considered to be riskier than GAP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| AEO | GAP | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 14.20% | 9.41% | +4.79% |
Volatility (6M)Calculated over the trailing 6-month period | 38.04% | 35.54% | +2.50% |
Volatility (1Y)Calculated over the trailing 1-year period | 70.08% | 44.86% | +25.22% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 54.30% | 55.64% | -1.34% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 51.94% | 55.37% | -3.43% |
Dividends
AEO vs. GAP - Dividend Comparison
AEO's dividend yield for the trailing twelve months is around 2.91%, less than GAP's 3.38% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AEO American Eagle Outfitters, Inc. | 2.91% | 1.90% | 3.00% | 1.42% | 2.58% | 3.22% | 1.37% | 2.81% | 2.85% | 2.66% | 3.30% | 3.23% |
GAP The Gap, Inc. | 3.38% | 2.52% | 2.54% | 2.87% | 5.05% | 2.73% | 1.20% | 5.49% | 3.72% | 2.03% | 5.12% | 3.68% |
Financials
AEO vs. GAP - Financials Comparison
This section allows you to compare key financial metrics between American Eagle Outfitters, Inc. and The Gap, Inc.. You can select fields from income statements, balance sheets, and cash flow statements to easily visualize and compare the financial health of both companies.
Total Revenue: Total amount of money received from sales and other business activities
AEO vs. GAP - Profitability Comparison
AEO - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Aug 2026, American Eagle Outfitters, Inc. reported a gross profit of 456.17M and revenue of 1.20B. Therefore, the gross margin over that period was 38.2%.
GAP - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Aug 2026, The Gap, Inc. reported a gross profit of 1.42B and revenue of 3.50B. Therefore, the gross margin over that period was 40.5%.
AEO - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Aug 2026, American Eagle Outfitters, Inc. reported an operating income of 28.23M and revenue of 1.20B, resulting in an operating margin of 2.4%.
GAP - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Aug 2026, The Gap, Inc. reported an operating income of 445.00M and revenue of 3.50B, resulting in an operating margin of 12.7%.
AEO - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Aug 2026, American Eagle Outfitters, Inc. reported a net income of 23.53M and revenue of 1.20B, resulting in a net margin of 2.0%.
GAP - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Aug 2026, The Gap, Inc. reported a net income of 339.00M and revenue of 3.50B, resulting in a net margin of 9.7%.
Frequently Asked Questions
AEO and GAP have a correlation of 0.56, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
AEO has higher volatility (14.20%) compared to GAP (9.41%). In terms of maximum drawdown, AEO dropped -80.67% vs GAP's -85.61%.
AEO currently has the higher Sharpe Ratio (0.91 vs 0.14), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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