WallStSmart

Caleres Inc (CAL)vsThe Gap, Inc. (GAP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

The Gap, Inc. generates 457% more annual revenue ($15.37B vs $2.76B). GAP leads profitability with a 5.3% profit margin vs -0.2%. CAL appears more attractively valued with a PEG of 0.82. GAP earns a higher WallStSmart Score of 55/100 (C).

CAL

Buy

50

out of 100

Grade: C-

Growth: 3.3Profit: 2.5Value: 7.3Quality: 5.0

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

CALSignificantly Overvalued (-175.2%)

Margin of Safety

-175.2%

Fair Value

$4.35

Current Price

$11.45

$7.10 premium

UndervaluedFair: $4.35Overvalued
GAPSignificantly Overvalued (-89.6%)

Margin of Safety

-89.6%

Fair Value

$14.48

Current Price

$24.93

$10.45 premium

UndervaluedFair: $14.48Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CAL3 strengths · Avg: 8.7/10
Price/BookValuation
0.6x10/10

Reasonable price relative to book value

PEG RatioValuation
0.828/10

Growing faster than its price suggests

P/E RatioValuation
16.8x8/10

Attractively priced relative to earnings

GAP3 strengths · Avg: 9.0/10
P/E RatioValuation
12.0x10/10

Attractively priced relative to earnings

Return on EquityProfitability
23.1%9/10

Every $100 of equity generates 23 in profit

Price/BookValuation
2.4x8/10

Reasonable price relative to book value

Areas to Watch

CAL4 concerns · Avg: 2.0/10
Market CapQuality
$363.70M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-1.6%2/10

ROE of -1.6% — below average capital efficiency

EPS GrowthGrowth
-94.1%2/10

Earnings declined 94.1%

Profit MarginProfitability
-0.2%1/10

Currently unprofitable

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 : CAL

The strongest argument for CAL centers on Price/Book, PEG Ratio, P/E Ratio. PEG of 0.82 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 1.39 suggests the stock is reasonably priced for its growth.

Bear Case : CAL

The primary concerns for CAL are Market Cap, Return on Equity, EPS Growth.

Bear Case : GAP

The primary concerns for GAP are Revenue Growth, Profit Margin, Operating Margin.

Key Dynamics to Monitor

CAL profiles as a turnaround stock while GAP is a value play — different risk/reward profiles.

GAP carries more volatility with a beta of 2.24 — expect wider price swings.

CAL is growing revenue faster at 8.7% — sustainability is the question.

GAP generates stronger free cash flow (696M), providing more financial flexibility.

Bottom Line

GAP scores higher overall (55/100 vs 50/100). 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.

Caleres Inc

CONSUMER CYCLICAL · APPAREL RETAIL · USA

Caleres, Inc. is engaged in the retail and wholesale of footwear in the United States, China, Canada, China, and Guam. The company is headquartered in St. Louis, Missouri.

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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