WallStSmart

Burlington Stores Inc (BURL)vsThe Gap, Inc. (GAP)

VS

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

Buy

63

out of 100

Grade: C+

Growth: 6.7Profit: 6.5Value: 6.7Quality: 5.8
Piotroski: 4/9Altman Z: 2.04

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

BURLUndervalued (+17.8%)

Margin of Safety

+17.8%

Fair Value

$371.98

Current Price

$310.38

$61.60 discount

UndervaluedFair: $371.98Overvalued
GAPSignificantly Overvalued (-89.6%)

Margin of Safety

-89.6%

Fair Value

$14.48

Current Price

$23.91

$9.43 premium

UndervaluedFair: $14.48Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BURL2 strengths · Avg: 9.0/10
Return on EquityProfitability
38.4%10/10

Every $100 of equity generates 38 in profit

EPS GrowthGrowth
20.3%8/10

Earnings expanding 20.3% YoY

GAP3 strengths · Avg: 9.0/10
P/E RatioValuation
11.2x10/10

Attractively priced relative to earnings

Return on EquityProfitability
23.1%9/10

Every $100 of equity generates 23 in profit

Price/BookValuation
2.3x8/10

Reasonable price relative to book value

Areas to Watch

BURL4 concerns · Avg: 3.3/10
P/E RatioValuation
32.8x4/10

Premium valuation, high expectations priced in

Price/BookValuation
11.0x4/10

Trading at 11.0x book value

Profit MarginProfitability
5.3%3/10

5.3% margin — thin

PEG RatioValuation
2.992/10

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 : 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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