WallStSmart

The Gap, Inc. (GAP)vsGenesco Inc (GCO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

The Gap, Inc. generates 529% more annual revenue ($15.40B vs $2.45B). GAP leads profitability with a 6.3% profit margin vs 0.8%. GCO appears more attractively valued with a PEG of 0.68. GAP earns a higher WallStSmart Score of 69/100 (B-).

GAP

Strong Buy

69

out of 100

Grade: B-

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

GCO

Buy

61

out of 100

Grade: C+

Growth: 6.0Profit: 3.5Value: 8.0Quality: 6.0
Piotroski: 5/9Altman Z: 2.68
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GAPSignificantly Overvalued (-25.8%)

Margin of Safety

-25.8%

Fair Value

$21.83

Current Price

$21.56

$0.27 premium

UndervaluedFair: $21.83Overvalued
GCOUndervalued (+33.5%)

Margin of Safety

+33.5%

Fair Value

$42.72

Current Price

$39.05

$3.67 discount

UndervaluedFair: $42.72Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

GCO3 strengths · Avg: 8.7/10
Price/BookValuation
0.7x10/10

Reasonable price relative to book value

PEG RatioValuation
0.688/10

Growing faster than its price suggests

EPS GrowthGrowth
41.6%8/10

Earnings expanding 41.6% YoY

Areas to Watch

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

GCO4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
2.8%4/10

2.8% revenue growth

Market CapQuality
$421.14M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
3.6%3/10

ROE of 3.6% — below average capital efficiency

Profit MarginProfitability
0.8%3/10

0.8% margin — thin

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : GCO

The strongest argument for GCO centers on Price/Book, PEG Ratio, EPS Growth. PEG of 0.68 suggests the stock is reasonably priced for its growth.

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.

Bear Case : GCO

The primary concerns for GCO are Revenue Growth, Market Cap, Return on Equity. Thin 0.8% margins leave little buffer for downturns.

Key Dynamics to Monitor

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

GCO is growing revenue faster at 2.8% — sustainability is the question.

GCO generates stronger free cash flow (121M), providing more financial flexibility.

Monitor APPAREL RETAIL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

GAP scores higher overall (69/100 vs 61/100). GCO offers better value entry with a 33.5% margin of safety. 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.

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.

Genesco Inc

CONSUMER CYCLICAL · APPAREL RETAIL · USA

Genesco Inc. is a retailer and wholesaler of footwear, apparel and accessories. The company is headquartered in Nashville, Tennessee.

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