The Gap, Inc. (GAP)vsLululemon Athletica Inc. (LULU)
GAP
The Gap, Inc.
$23.63
-0.17%
CONSUMER CYCLICAL · Cap: $9.02B
LULU
Lululemon Athletica Inc.
$128.98
-3.44%
CONSUMER CYCLICAL · Cap: $15.67B
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 0.64. 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
+9.1%
Fair Value
$30.21
Current Price
$23.63
$6.58 discount
Margin of Safety
+71.2%
Fair Value
$609.94
Current Price
$128.98
$480.96 discount
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
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
0.8% revenue growth
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 1.45 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, Altman Z-Score. PEG of 0.64 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 Revenue Growth, Piotroski F-Score, EPS Growth.
Key Dynamics to Monitor
GAP carries more volatility with a beta of 2.25 — expect wider price swings.
GAP is growing revenue faster at 2.1% — sustainability is the question.
LULU generates stronger free cash flow (960M), providing more financial flexibility.
Monitor APPAREL RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LULU scores higher overall (65/100 vs 55/100). 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.
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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