The Gap, Inc. (GAP)vsLululemon Athletica Inc. (LULU)
GAP
The Gap, Inc.
$23.91
-0.71%
CONSUMER CYCLICAL · Cap: $8.89B
LULU
Lululemon Athletica Inc.
$162.82
-1.66%
CONSUMER CYCLICAL · Cap: $19.10B
Smart Verdict
WallStSmart Research — data-driven comparison
The Gap, Inc. generates 38% more annual revenue ($15.37B vs $11.10B). LULU leads profitability with a 14.2% profit margin vs 5.3%. LULU appears more attractively valued with a PEG of 0.91. LULU earns a higher WallStSmart Score of 65/100 (B-).
GAP
Buy55
out of 100
Grade: C
LULU
Strong Buy65
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-89.6%
Fair Value
$14.48
Current Price
$23.91
$9.43 premium
Margin of Safety
-82.8%
Fair Value
$96.22
Current Price
$162.82
$66.60 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Every $100 of equity generates 23 in profit
Reasonable price relative to book value
Attractively priced relative to earnings
Every $100 of equity generates 34 in profit
Revenue surging 80.0% year-over-year
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Strong operational efficiency at 22.3%
Areas to Watch
2.1% revenue growth
5.3% margin — thin
Operating margin of 4.9%
Weak financial health signals
Weak financial health signals
Earnings declined 18.5%
Comparative Analysis Report
WallStSmart ResearchBull Case : GAP
The strongest argument for GAP centers on P/E Ratio, Return on Equity, Price/Book. PEG of 1.39 suggests the stock is reasonably priced for its growth.
Bull Case : LULU
The strongest argument for LULU centers on P/E Ratio, Return on Equity, Revenue Growth. Revenue growth of 80.0% demonstrates continued momentum. PEG of 0.91 suggests the stock is reasonably priced for its growth.
Bear Case : GAP
The primary concerns for GAP are Revenue Growth, Profit Margin, Operating Margin.
Bear Case : LULU
The primary concerns for LULU are Piotroski F-Score, EPS Growth.
Key Dynamics to Monitor
GAP profiles as a value stock while LULU is a growth play — different risk/reward profiles.
GAP carries more volatility with a beta of 2.24 — expect wider price swings.
LULU is growing revenue faster at 80.0% — sustainability is the question.
LULU generates stronger free cash flow (922M), providing more financial flexibility.
Bottom Line
LULU scores higher overall (65/100 vs 55/100) and 80.0% revenue growth. 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 leading global apparel retailer founded in 1969, recognized for its portfolio of well-known brands such as Gap, Banana Republic, Old Navy, and Athleta. Headquartered in San Francisco, California, the company operates in over 40 countries and is dedicated to providing quality, value, and style to a diverse customer base. Emphasizing digital transformation and sustainability, Gap is expanding its e-commerce capabilities while focusing on innovative product development and strategic growth initiatives to maintain its competitive edge in the ever-evolving retail sector.
Lululemon Athletica Inc.
CONSUMER CYCLICAL · APPAREL RETAIL · USA
lululemon athletica inc. The company is headquartered in Vancouver, Canada.
Visit Website →Compare with Other APPAREL RETAIL Stocks
Want to dig deeper into these stocks?