Carter’s Inc (CRI)vsThe Gap, Inc. (GAP)
CRI
Carter’s Inc
$30.43
+0.79%
CONSUMER CYCLICAL · Cap: $1.18B
GAP
The Gap, Inc.
$21.51
+2.87%
CONSUMER CYCLICAL · Cap: $7.86B
Smart Verdict
WallStSmart Research — data-driven comparison
The Gap, Inc. generates 414% more annual revenue ($15.33B vs $2.98B). GAP leads profitability with a 8.1% profit margin vs 6.5%. GAP appears more attractively valued with a PEG of 1.16. CRI earns a higher WallStSmart Score of 73/100 (B).
CRI
Strong Buy73
out of 100
Grade: B
GAP
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+36.8%
Fair Value
$59.81
Current Price
$30.43
$29.38 discount
Margin of Safety
-24.0%
Fair Value
$22.14
Current Price
$21.51
$0.63 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Earnings expanding 47146.0% YoY
Strong operational efficiency at 23.7%
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
Expensive relative to growth rate
Smaller company, higher risk/reward
6.5% margin — thin
Elevated debt levels
Elevated debt levels
Weak financial health signals
Revenue declined 2.0%
Comparative Analysis Report
WallStSmart ResearchBull Case : CRI
The strongest argument for CRI centers on P/E Ratio, Price/Book, EPS Growth.
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 : CRI
The primary concerns for CRI are PEG Ratio, Market Cap, Profit Margin.
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.
CRI is growing revenue faster at 5.2% — sustainability is the question.
CRI generates stronger free cash flow (190M), providing more financial flexibility.
Monitor APPAREL RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
CRI scores higher overall (73/100 vs 68/100). Both earn "Strong Buy" and "Strong 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.
Carter’s Inc
CONSUMER CYCLICAL · APPAREL RETAIL · USA
Carter's, Inc. designs, supplies, and markets branded children's clothing under the brands Carter's, OshKosh, Skip Hop, Child of Mine, Just One You, Simple Joys, Carter's little baby basics, and other brands in the United States and internationally. The company is headquartered in Atlanta, Georgia.
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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