Amazon.com Inc (AMZN)vsThe Gap, Inc. (GAP)
AMZN
Amazon.com Inc
$256.78
+1.94%
CONSUMER CYCLICAL · Cap: $2.77T
GAP
The Gap, Inc.
$21.51
+2.87%
CONSUMER CYCLICAL · Cap: $7.86B
Smart Verdict
WallStSmart Research — data-driven comparison
Amazon.com Inc generates 4961% more annual revenue ($775.68B vs $15.33B). AMZN leads profitability with a 17.4% profit margin vs 8.1%. GAP appears more attractively valued with a PEG of 1.16. AMZN earns a higher WallStSmart Score of 72/100 (B).
AMZN
Strong Buy72
out of 100
Grade: B
GAP
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-59.1%
Fair Value
$161.40
Current Price
$256.78
$95.38 premium
Margin of Safety
-24.0%
Fair Value
$22.14
Current Price
$21.51
$0.63 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Earnings expanding 242.3% YoY
Every $100 of equity generates 25 in profit
19.6% revenue growth
Attractively priced relative to earnings
Earnings expanding 142.1% YoY
Every $100 of equity generates 21 in profit
Reasonable price relative to book value
Areas to Watch
Weak financial health signals
Negative free cash flow — burning cash
Elevated debt levels
Weak financial health signals
Revenue declined 2.0%
Comparative Analysis Report
WallStSmart ResearchBull Case : AMZN
The strongest argument for AMZN centers on Market Cap, EPS Growth, Return on Equity. Profitability is solid with margins at 17.4% and operating margin at 13.7%. Revenue growth of 19.6% demonstrates continued momentum.
Bull Case : GAP
The strongest argument for GAP centers on P/E Ratio, EPS Growth, Return on Equity. PEG of 1.16 suggests the stock is reasonably priced for its growth.
Bear Case : AMZN
The primary concerns for AMZN are Piotroski F-Score, Free Cash Flow.
Bear Case : GAP
The primary concerns for GAP are Debt/Equity, Piotroski F-Score, Revenue Growth.
Key Dynamics to Monitor
AMZN profiles as a growth stock while GAP is a value play — different risk/reward profiles.
GAP carries more volatility with a beta of 2.06 — expect wider price swings.
AMZN is growing revenue faster at 19.6% — sustainability is the question.
GAP generates stronger free cash flow (183M), providing more financial flexibility.
Bottom Line
AMZN scores higher overall (72/100 vs 68/100), backed by strong 17.4% margins and 19.6% revenue growth. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Amazon.com Inc
CONSUMER CYCLICAL · INTERNET RETAIL · USA
Amazon.com, Inc. is an American multinational technology company which focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. It is one of the Big Five companies in the U.S. information technology industry, along with Google, Apple, Microsoft, and Facebook. The company has been referred to as one of the most influential economic and cultural forces in the world, as well as the world's most valuable brand.
Visit Website →The Gap, Inc.
CONSUMER CYCLICAL · APPAREL RETAIL · USA
The Gap, Inc. (GAP) is a leading global apparel retailer established in 1969, renowned for its strong portfolio of brands, including Gap, Banana Republic, Old Navy, and Athleta. Headquartered in San Francisco and operating in over 40 countries, the company emphasizes quality, style, and value to cater to a diverse customer base. In response to the evolving retail environment, Gap is aggressively pursuing digital transformation and sustainability initiatives, focusing on enhancing its e-commerce capabilities and introducing innovative product offerings to drive growth and maintain its competitive edge in the marketplace.
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