Burlington Stores Inc (BURL)vsThe Gap, Inc. (GAP)
BURL
Burlington Stores Inc
$237.12
-1.03%
CONSUMER CYCLICAL · Cap: $16.04B
GAP
The Gap, Inc.
$20.54
-1.58%
CONSUMER CYCLICAL · Cap: $7.86B
Smart Verdict
WallStSmart Research — data-driven comparison
The Gap, Inc. generates 26% more annual revenue ($15.33B vs $12.21B). GAP leads profitability with a 8.1% profit margin vs 5.8%. GAP appears more attractively valued with a PEG of 1.16. GAP earns a higher WallStSmart Score of 68/100 (B-).
BURL
Buy63
out of 100
Grade: C+
GAP
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-23.8%
Fair Value
$247.04
Current Price
$237.12
$9.92 premium
Margin of Safety
-24.1%
Fair Value
$22.12
Current Price
$20.54
$1.58 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 36 in profit
Earnings expanding 95.9% YoY
Attractively priced relative to earnings
Earnings expanding 142.1% YoY
Every $100 of equity generates 21 in profit
Reasonable price relative to book value
Areas to Watch
Grey zone — moderate risk
5.8% margin — thin
Expensive relative to growth rate
Negative free cash flow — burning cash
Elevated debt levels
Weak financial health signals
Revenue declined 2.0%
Comparative Analysis Report
WallStSmart ResearchBull Case : BURL
The strongest argument for BURL centers on Return on Equity, EPS Growth. Revenue growth of 11.0% demonstrates continued momentum.
Bull Case : GAP
The strongest argument for GAP centers on P/E Ratio, EPS Growth, Return on Equity. PEG of 1.16 suggests the stock is reasonably priced for its growth.
Bear Case : BURL
The primary concerns for BURL are Altman Z-Score, Profit Margin, PEG Ratio. Debt-to-equity of 2.95 is elevated, increasing financial risk.
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.
BURL is growing revenue faster at 11.0% — 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 63/100). 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.
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. (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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