WallStSmart

Duluth Holdings Inc (DLTH)vsThe Gap, Inc. (GAP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

The Gap, Inc. generates 2625% more annual revenue ($15.40B vs $565.18M). GAP leads profitability with a 6.3% profit margin vs -2.9%. DLTH appears more attractively valued with a PEG of 0.83. GAP earns a higher WallStSmart Score of 69/100 (B-).

DLTH

Hold

41

out of 100

Grade: D

Growth: 2.0Profit: 2.5Value: 7.7Quality: 7.0
Piotroski: 6/9Altman Z: 2.16

GAP

Strong Buy

69

out of 100

Grade: B-

Growth: 5.3Profit: 6.0Value: 6.0Quality: 5.5
Piotroski: 3/9Altman Z: 2.40
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DLTHUndervalued (+73.7%)

Margin of Safety

+73.7%

Fair Value

$8.97

Current Price

$3.32

$5.65 discount

UndervaluedFair: $8.97Overvalued
GAPSignificantly Overvalued (-25.8%)

Margin of Safety

-25.8%

Fair Value

$21.83

Current Price

$21.56

$0.27 premium

UndervaluedFair: $21.83Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DLTH2 strengths · Avg: 9.0/10
Price/BookValuation
0.7x10/10

Reasonable price relative to book value

PEG RatioValuation
0.838/10

Growing faster than its price suggests

GAP4 strengths · Avg: 9.3/10
P/E RatioValuation
8.7x10/10

Attractively priced relative to earnings

EPS GrowthGrowth
76.5%10/10

Earnings expanding 76.5% YoY

Return on EquityProfitability
21.5%9/10

Every $100 of equity generates 21 in profit

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

Areas to Watch

DLTH4 concerns · Avg: 2.5/10
Market CapQuality
$126.59M3/10

Smaller company, higher risk/reward

Operating MarginProfitability
4.2%3/10

Operating margin of 4.2%

Return on EquityProfitability
-9.7%2/10

ROE of -9.7% — below average capital efficiency

Revenue GrowthGrowth
-10.5%2/10

Revenue declined 10.5%

GAP4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
1.0%4/10

1.0% revenue growth

Profit MarginProfitability
6.3%3/10

6.3% margin — thin

Debt/EquityHealth
1.543/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : DLTH

The strongest argument for DLTH centers on Price/Book, PEG Ratio. PEG of 0.83 suggests the stock is reasonably priced for its growth.

Bull Case : GAP

The strongest argument for GAP centers on P/E Ratio, EPS Growth, Return on Equity. PEG of 1.28 suggests the stock is reasonably priced for its growth.

Bear Case : DLTH

The primary concerns for DLTH are Market Cap, Operating Margin, Return on Equity.

Bear Case : GAP

The primary concerns for GAP are Revenue Growth, Profit Margin, Debt/Equity. Debt-to-equity of 1.54 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

GAP carries more volatility with a beta of 2.01 — expect wider price swings.

GAP is growing revenue faster at 1.0% — sustainability is the question.

GAP generates stronger free cash flow (78M), providing more financial flexibility.

Bottom Line

GAP scores higher overall (69/100 vs 41/100). DLTH offers better value entry with a 73.7% margin of safety. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Duluth Holdings Inc

CONSUMER CYCLICAL · APPAREL RETAIL · USA

Duluth Holdings Inc. sells men's and women's casual, workwear, and accessories under the Duluth Trading brand in the United States. The company is headquartered in Mount Horeb, Wisconsin.

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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