The Gap, Inc. (GAP)vsLululemon Athletica Inc. (LULU)
GAP
The Gap, Inc.
$21.56
0.00%
CONSUMER CYCLICAL · Cap: $7.88B
LULU
Lululemon Athletica Inc.
$114.23
-8.56%
CONSUMER CYCLICAL · Cap: $13.49B
Smart Verdict
WallStSmart Research — data-driven comparison
The Gap, Inc. generates 37% more annual revenue ($15.40B vs $11.20B). LULU leads profitability with a 13.0% profit margin vs 6.3%. LULU appears more attractively valued with a PEG of 0.58. GAP earns a higher WallStSmart Score of 69/100 (B-).
GAP
Strong Buy69
out of 100
Grade: B-
LULU
Buy64
out of 100
Grade: C+
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
+70.7%
Fair Value
$600.18
Current Price
$114.23
$485.95 discount
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
Attractively priced relative to earnings
Every $100 of equity generates 30 in profit
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Reasonable price relative to book value
Areas to Watch
1.0% revenue growth
6.3% margin — thin
Elevated debt levels
Weak financial health signals
4.3% revenue growth
Weak financial health signals
Earnings declined 35.0%
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 : LULU
The strongest argument for LULU centers on P/E Ratio, Return on Equity, Altman Z-Score. PEG of 0.58 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 : 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 2.01 — expect wider price swings.
LULU is growing revenue faster at 4.3% — sustainability is the question.
LULU generates stronger free cash flow (87M), providing more financial flexibility.
Monitor APPAREL RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
GAP scores higher overall (69/100 vs 64/100). LULU offers better value entry with a 70.7% 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. 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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