WallStSmart

Abercrombie & Fitch Company (ANF)vsThe Gap, Inc. (GAP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

The Gap, Inc. generates 192% more annual revenue ($15.37B vs $5.27B). ANF leads profitability with a 9.6% profit margin vs 5.3%. GAP appears more attractively valued with a PEG of 1.39. ANF earns a higher WallStSmart Score of 59/100 (C).

ANF

Buy

59

out of 100

Grade: C

Growth: 6.0Profit: 7.5Value: 6.7Quality: 7.0
Piotroski: 2/9Altman Z: 4.27

GAP

Buy

55

out of 100

Grade: C

Growth: 2.7Profit: 5.5Value: 7.3Quality: 5.8
Piotroski: 2/9Altman Z: 2.38
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ANFUndervalued (+24.6%)

Margin of Safety

+24.6%

Fair Value

$121.34

Current Price

$88.55

$32.79 discount

UndervaluedFair: $121.34Overvalued
GAPSignificantly Overvalued (-89.6%)

Margin of Safety

-89.6%

Fair Value

$14.48

Current Price

$24.93

$10.45 premium

UndervaluedFair: $14.48Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ANF4 strengths · Avg: 9.5/10
P/E RatioValuation
8.5x10/10

Attractively priced relative to earnings

Return on EquityProfitability
37.2%10/10

Every $100 of equity generates 37 in profit

Altman Z-ScoreHealth
4.2710/10

Safe zone — low bankruptcy risk

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

GAP3 strengths · Avg: 9.0/10
P/E RatioValuation
12.0x10/10

Attractively priced relative to earnings

Return on EquityProfitability
23.1%9/10

Every $100 of equity generates 23 in profit

Price/BookValuation
2.4x8/10

Reasonable price relative to book value

Areas to Watch

ANF4 concerns · Avg: 3.0/10
EPS GrowthGrowth
3.0%4/10

3.0% earnings growth

Debt/EquityHealth
1.553/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
3.622/10

Expensive relative to growth rate

GAP4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
2.1%4/10

2.1% revenue growth

Profit MarginProfitability
5.3%3/10

5.3% margin — thin

Operating MarginProfitability
4.9%3/10

Operating margin of 4.9%

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : ANF

The strongest argument for ANF centers on P/E Ratio, Return on Equity, Altman Z-Score.

Bull Case : GAP

The strongest argument for GAP centers on P/E Ratio, Return on Equity, Price/Book. PEG of 1.39 suggests the stock is reasonably priced for its growth.

Bear Case : ANF

The primary concerns for ANF are EPS Growth, Debt/Equity, Piotroski F-Score. Debt-to-equity of 1.55 is elevated, increasing financial risk.

Bear Case : GAP

The primary concerns for GAP are Revenue Growth, Profit Margin, Operating Margin.

Key Dynamics to Monitor

GAP carries more volatility with a beta of 2.24 — expect wider price swings.

ANF is growing revenue faster at 5.4% — sustainability is the question.

GAP generates stronger free cash flow (696M), providing more financial flexibility.

Monitor APPAREL RETAIL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ANF scores higher overall (59/100 vs 55/100). Both earn "Buy" and "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.

Abercrombie & Fitch Company

CONSUMER CYCLICAL · APPAREL RETAIL · USA

Abercrombie & Fitch Co., is a specialty retailer. The company is headquartered in New Albany, Ohio.

The Gap, Inc.

CONSUMER CYCLICAL · APPAREL RETAIL · USA

The Gap, Inc. is a leading global apparel retailer founded in 1969, recognized for its portfolio of well-known brands such as Gap, Banana Republic, Old Navy, and Athleta. Headquartered in San Francisco, California, the company operates in over 40 countries and is dedicated to providing quality, value, and style to a diverse customer base. Emphasizing digital transformation and sustainability, Gap is expanding its e-commerce capabilities while focusing on innovative product development and strategic growth initiatives to maintain its competitive edge in the ever-evolving retail sector.

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