WallStSmart

The Gap, Inc. (GAP)vsJ.Jill Inc (JILL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

The Gap, Inc. generates 2482% more annual revenue ($15.40B vs $596.55M). GAP leads profitability with a 6.3% profit margin vs 4.7%. JILL appears more attractively valued with a PEG of 0.63. 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

JILL

Buy

54

out of 100

Grade: C-

Growth: 2.0Profit: 5.5Value: 6.7Quality: 4.5
Piotroski: 2/9Altman Z: 1.60
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
JILLSignificantly Overvalued (-55.8%)

Margin of Safety

-55.8%

Fair Value

$10.44

Current Price

$13.07

$2.63 premium

UndervaluedFair: $10.44Overvalued

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

JILL4 strengths · Avg: 8.8/10
P/E RatioValuation
7.2x10/10

Attractively priced relative to earnings

Return on EquityProfitability
23.0%9/10

Every $100 of equity generates 23 in profit

PEG RatioValuation
0.638/10

Growing faster than its price suggests

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

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

JILL4 concerns · Avg: 3.3/10
Altman Z-ScoreHealth
1.604/10

Distress zone — elevated risk

Market CapQuality
$194.97M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
4.7%3/10

4.7% margin — thin

Operating MarginProfitability
0.6%3/10

Operating margin of 0.6%

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 : JILL

The strongest argument for JILL centers on P/E Ratio, Return on Equity, PEG Ratio. PEG of 0.63 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 : JILL

The primary concerns for JILL are Altman Z-Score, Market Cap, Profit Margin. Debt-to-equity of 1.76 is elevated, increasing financial risk. Thin 4.7% margins leave little buffer for downturns.

Key Dynamics to Monitor

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.

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

Bottom Line

GAP scores higher overall (69/100 vs 54/100). 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.

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.

J.Jill Inc

CONSUMER CYCLICAL · APPAREL RETAIL · USA

J.Jill, Inc. is an omnichannel womenswear retailer under the J.Jill brand in the United States. The company is headquartered in Quincy, Massachusetts.

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