The Gap, Inc. (GAP)vsRoss Stores Inc (ROST)
GAP
The Gap, Inc.
$20.54
-1.58%
CONSUMER CYCLICAL · Cap: $7.86B
ROST
Ross Stores Inc
$226.61
-1.25%
CONSUMER CYCLICAL · Cap: $74.02B
Smart Verdict
WallStSmart Research — data-driven comparison
Ross Stores Inc generates 60% more annual revenue ($24.51B vs $15.33B). ROST leads profitability with a 10.8% profit margin vs 8.1%. GAP appears more attractively valued with a PEG of 1.16. GAP earns a higher WallStSmart Score of 68/100 (B-).
GAP
Strong Buy68
out of 100
Grade: B-
ROST
Buy64
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
-4.8%
Fair Value
$183.80
Current Price
$226.61
$42.81 premium
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
Every $100 of equity generates 39 in profit
Earnings expanding 70.5% YoY
Safe zone — low bankruptcy risk
Large-cap with strong market position
Areas to Watch
Elevated debt levels
Weak financial health signals
Revenue declined 2.0%
Expensive relative to growth rate
Moderate valuation
Trading at 10.7x book value
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 : ROST
The strongest argument for ROST centers on Return on Equity, EPS Growth, Altman Z-Score. Revenue growth of 13.3% demonstrates continued momentum.
Bear Case : GAP
The primary concerns for GAP are Debt/Equity, Piotroski F-Score, Revenue Growth.
Bear Case : ROST
The primary concerns for ROST are PEG Ratio, P/E Ratio, Price/Book.
Key Dynamics to Monitor
GAP carries more volatility with a beta of 2.06 — expect wider price swings.
ROST is growing revenue faster at 13.3% — sustainability is the question.
ROST generates stronger free cash flow (624M), providing more financial flexibility.
Monitor APPAREL RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
GAP scores higher overall (68/100 vs 64/100). 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. (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.
Ross Stores Inc
CONSUMER CYCLICAL · APPAREL RETAIL · USA
Ross Stores, Inc., operating under the brand name Ross Dress for Less, is an American chain of discount department stores headquartered in Dublin, California.
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