WallStSmart

Buckle Inc (BKE)vsThe Gap, Inc. (GAP)

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Smart Verdict

WallStSmart Research — data-driven comparison

The Gap, Inc. generates 1054% more annual revenue ($15.33B vs $1.33B). BKE leads profitability with a 16.6% profit margin vs 8.1%. GAP appears more attractively valued with a PEG of 1.12. GAP earns a higher WallStSmart Score of 68/100 (B-).

BKE

Buy

54

out of 100

Grade: C-

Growth: 2.7Profit: 9.0Value: 5.3Quality: 7.0
Piotroski: 2/9Altman Z: 3.22

GAP

Strong Buy

68

out of 100

Grade: B-

Growth: 4.7Profit: 6.5Value: 6.0Quality: 5.5
Piotroski: 3/9Altman Z: 2.41
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BKEOvervalued (-11.9%)

Margin of Safety

-11.9%

Fair Value

$46.62

Current Price

$42.27

$4.35 premium

UndervaluedFair: $46.62Overvalued
GAPSignificantly Overvalued (-24.1%)

Margin of Safety

-24.1%

Fair Value

$22.12

Current Price

$21.82

$0.30 premium

UndervaluedFair: $22.12Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BKE3 strengths · Avg: 10.0/10
P/E RatioValuation
9.4x10/10

Attractively priced relative to earnings

Return on EquityProfitability
49.0%10/10

Every $100 of equity generates 49 in profit

Altman Z-ScoreHealth
3.2210/10

Safe zone — low bankruptcy risk

GAP4 strengths · Avg: 9.3/10
P/E RatioValuation
6.4x10/10

Attractively priced relative to earnings

EPS GrowthGrowth
142.1%10/10

Earnings expanding 142.1% YoY

Return on EquityProfitability
21.5%9/10

Every $100 of equity generates 21 in profit

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Areas to Watch

BKE4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
4.6%4/10

4.6% revenue growth

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
3.322/10

Expensive relative to growth rate

EPS GrowthGrowth
-2.2%2/10

Earnings declined 2.2%

GAP3 concerns · Avg: 2.7/10
Debt/EquityHealth
1.453/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-2.0%2/10

Revenue declined 2.0%

Comparative Analysis Report

WallStSmart Research

Bull Case : BKE

The strongest argument for BKE centers on P/E Ratio, Return on Equity, Altman Z-Score. Profitability is solid with margins at 16.6% and operating margin at 17.4%.

Bull Case : GAP

The strongest argument for GAP centers on P/E Ratio, EPS Growth, Return on Equity. PEG of 1.12 suggests the stock is reasonably priced for its growth.

Bear Case : BKE

The primary concerns for BKE are Revenue Growth, Piotroski F-Score, PEG Ratio.

Bear Case : GAP

The primary concerns for GAP are Debt/Equity, Piotroski F-Score, Revenue Growth.

Key Dynamics to Monitor

GAP carries more volatility with a beta of 2.06 — expect wider price swings.

BKE is growing revenue faster at 4.6% — sustainability is the question.

GAP generates stronger free cash flow (183M), providing more financial flexibility.

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

Bottom Line

GAP scores higher overall (68/100 vs 54/100). Both earn "Strong 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.

Buckle Inc

CONSUMER CYCLICAL · APPAREL RETAIL · USA

The Buckle, Inc. is a retailer of casual clothing, footwear and accessories for young men and women in the United States. The company is headquartered in Kearney, Nebraska.

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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