Burlington Stores Inc (BURL)vsThe Gap, Inc. (GAP)
BURL
Burlington Stores Inc
$312.67
+1.10%
CONSUMER CYCLICAL · Cap: $19.98B
GAP
The Gap, Inc.
$23.63
-0.17%
CONSUMER CYCLICAL · Cap: $9.02B
Smart Verdict
WallStSmart Research — data-driven comparison
The Gap, Inc. generates 33% more annual revenue ($15.37B vs $11.56B). GAP leads profitability with a 5.3% profit margin vs 5.3%. BURL appears more attractively valued with a PEG of 0.92. BURL earns a higher WallStSmart Score of 69/100 (B-).
BURL
Strong Buy69
out of 100
Grade: B-
GAP
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-13.4%
Fair Value
$269.81
Current Price
$312.67
$42.86 premium
Margin of Safety
+9.1%
Fair Value
$30.21
Current Price
$23.63
$6.58 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 38 in profit
Growing faster than its price suggests
Earnings expanding 20.2% 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 10.7x book value
5.3% margin — thin
Negative free cash flow — burning cash
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, PEG Ratio, EPS Growth. Revenue growth of 11.3% demonstrates continued momentum. PEG of 0.92 suggests the stock is reasonably priced for its growth.
Bull Case : GAP
The strongest argument for GAP centers on P/E Ratio, Return on Equity, Price/Book. PEG of 1.45 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 2.25 — 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 (69/100 vs 55/100) and 11.3% revenue growth. 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.
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 prominent global apparel retailer founded in 1969, known for its diverse portfolio of iconic brands including Gap, Banana Republic, Old Navy, and Athleta. Headquartered in San Francisco, the company services over 40 countries and prioritizes quality, value, and style for a broad customer demographic. As it navigates the dynamic retail landscape, Gap is committed to enhancing its digital transformation and sustainability efforts, aiming to bolster its e-commerce presence while pursuing innovative product offerings and strategic growth initiatives to sustain its competitive advantage.
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