The Gap, Inc. (GAP)vsLululemon Athletica Inc. (LULU)
GAP
The Gap, Inc.
$20.54
-1.58%
CONSUMER CYCLICAL · Cap: $7.86B
LULU
Lululemon Athletica Inc.
$98.06
-1.34%
CONSUMER CYCLICAL · Cap: $11.42B
Smart Verdict
WallStSmart Research — data-driven comparison
The Gap, Inc. generates 38% more annual revenue ($15.33B vs $11.09B). LULU leads profitability with a 12.8% profit margin vs 8.1%. LULU appears more attractively valued with a PEG of 0.77. GAP earns a higher WallStSmart Score of 68/100 (B-).
GAP
Strong Buy68
out of 100
Grade: B-
LULU
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-24.1%
Fair Value
$22.12
Current Price
$20.54
$1.58 premium
Margin of Safety
+70.5%
Fair Value
$595.37
Current Price
$98.06
$497.31 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Earnings expanding 142.1% YoY
Every $100 of equity generates 21 in profit
Reasonable price relative to book value
Attractively priced relative to earnings
Safe zone — low bankruptcy risk
Every $100 of equity generates 30 in profit
Growing faster than its price suggests
Reasonable price relative to book value
Areas to Watch
Elevated debt levels
Weak financial health signals
Revenue declined 2.0%
Weak financial health signals
Revenue declined 4.3%
Earnings declined 5.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : GAP
The strongest argument for GAP centers on P/E Ratio, EPS Growth, Return on Equity. PEG of 1.16 suggests the stock is reasonably priced for its growth.
Bull Case : LULU
The strongest argument for LULU centers on P/E Ratio, Altman Z-Score, Return on Equity. PEG of 0.77 suggests the stock is reasonably priced for its growth.
Bear Case : GAP
The primary concerns for GAP are Debt/Equity, Piotroski F-Score, Revenue Growth.
Bear Case : LULU
The primary concerns for LULU are Piotroski F-Score, Revenue Growth, EPS Growth.
Key Dynamics to Monitor
GAP profiles as a value stock while LULU is a declining play — different risk/reward profiles.
GAP carries more volatility with a beta of 2.06 — expect wider price swings.
GAP is growing revenue faster at -2.0% — sustainability is the question.
LULU generates stronger free cash flow (225M), providing more financial flexibility.
Bottom Line
GAP scores higher overall (68/100 vs 62/100). LULU offers better value entry with a 70.5% 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. (GAP) is a leading global apparel retailer established in 1969, renowned for its strong portfolio of brands, including Gap, Banana Republic, Old Navy, and Athleta. Headquartered in San Francisco and operating in over 40 countries, the company emphasizes quality, style, and value to cater to a diverse customer base. In response to the evolving retail environment, Gap is aggressively pursuing digital transformation and sustainability initiatives, focusing on enhancing its e-commerce capabilities and introducing innovative product offerings to drive growth and maintain its competitive edge in the marketplace.
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
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