The Gap, Inc. (GAP)vsLands’ End Inc (LE)
GAP
The Gap, Inc.
$21.56
0.00%
CONSUMER CYCLICAL · Cap: $7.88B
LE
Lands’ End Inc
$11.27
-5.05%
CONSUMER CYCLICAL · Cap: $345.21M
Smart Verdict
WallStSmart Research — data-driven comparison
The Gap, Inc. generates 1053% more annual revenue ($15.40B vs $1.34B). GAP leads profitability with a 6.3% profit margin vs 0.4%. LE appears more attractively valued with a PEG of 0.68. GAP earns a higher WallStSmart Score of 69/100 (B-).
GAP
Strong Buy69
out of 100
Grade: B-
LE
Hold48
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-25.8%
Fair Value
$21.83
Current Price
$21.56
$0.27 premium
Margin of Safety
-58.3%
Fair Value
$11.16
Current Price
$11.27
$0.11 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Earnings expanding 76.5% YoY
Every $100 of equity generates 21 in profit
Reasonable price relative to book value
Reasonable price relative to book value
Conservative balance sheet, low leverage
Growing faster than its price suggests
Areas to Watch
1.0% revenue growth
6.3% margin — thin
Elevated debt levels
Weak financial health signals
4.7% revenue growth
Smaller company, higher risk/reward
ROE of 2.3% — below average capital efficiency
0.4% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull 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 : LE
The strongest argument for LE centers on Price/Book, Debt/Equity, PEG Ratio. 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 : LE
The primary concerns for LE are Revenue Growth, Market Cap, Return on Equity. A P/E of 62.3x leaves little room for execution misses. Thin 0.4% margins leave little buffer for downturns.
Key Dynamics to Monitor
LE carries more volatility with a beta of 2.31 — expect wider price swings.
LE is growing revenue faster at 4.7% — 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 48/100). 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.
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.
Lands’ End Inc
CONSUMER CYCLICAL · APPAREL RETAIL · USA
Lands' End, Inc. is a single-channel retailer of casual clothing, accessories, footwear, and home products in the United States, Europe, Asia, and internationally. The company is headquartered in Dodgeville, Wisconsin.
Compare with Other APPAREL RETAIL Stocks
Want to dig deeper into these stocks?