Burlington Stores Inc (BURL)vsThe Gap, Inc. (GAP)
BURL
Burlington Stores Inc
$310.38
-0.52%
CONSUMER CYCLICAL · Cap: $19.53B
GAP
The Gap, Inc.
$23.91
-0.71%
CONSUMER CYCLICAL · Cap: $8.89B
Smart Verdict
WallStSmart Research — data-driven comparison
The Gap, Inc. generates 33% more annual revenue ($15.37B vs $11.55B). GAP leads profitability with a 5.3% profit margin vs 5.3%. GAP appears more attractively valued with a PEG of 1.39. BURL earns a higher WallStSmart Score of 63/100 (C+).
BURL
Buy63
out of 100
Grade: C+
GAP
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+17.8%
Fair Value
$371.98
Current Price
$310.38
$61.60 discount
Margin of Safety
-89.6%
Fair Value
$14.48
Current Price
$23.91
$9.43 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 38 in profit
Earnings expanding 20.3% YoY
Attractively priced relative to earnings
Every $100 of equity generates 23 in profit
Reasonable price relative to book value
Areas to Watch
Premium valuation, high expectations priced in
Trading at 11.0x book value
5.3% margin — thin
Expensive relative to growth rate
2.1% revenue growth
5.3% margin — thin
Operating margin of 4.9%
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : BURL
The strongest argument for BURL centers on Return on Equity, EPS Growth. Revenue growth of 11.3% demonstrates continued momentum.
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 : BURL
The primary concerns for BURL are P/E Ratio, Price/Book, Profit Margin.
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.
BURL is growing revenue faster at 11.3% — 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
BURL scores higher overall (63/100 vs 55/100) and 11.3% revenue growth. 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.
Burlington Stores Inc
CONSUMER CYCLICAL · APPAREL RETAIL · USA
Burlington Stores, Inc. is a branded apparel retailer in the United States. The company is headquartered in Burlington, New Jersey.
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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