The Gap, Inc. (GAP)vsShoe Carnival Inc (SCVL)
GAP
The Gap, Inc.
$20.22
0.00%
CONSUMER CYCLICAL · Cap: $7.53B
SCVL
Shoe Carnival Inc
$17.04
-2.01%
CONSUMER CYCLICAL · Cap: $458.59M
Smart Verdict
WallStSmart Research — data-driven comparison
The Gap, Inc. generates 1265% more annual revenue ($15.40B vs $1.13B). GAP leads profitability with a 6.3% profit margin vs 3.3%. SCVL appears more attractively valued with a PEG of 0.95. GAP earns a higher WallStSmart Score of 69/100 (B-).
GAP
Strong Buy69
out of 100
Grade: B-
SCVL
Buy52
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-25.9%
Fair Value
$21.81
Current Price
$20.22
$1.59 premium
Intrinsic value data unavailable for SCVL.
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
Reasonable price relative to book value
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Attractively priced relative to earnings
Areas to Watch
1.0% revenue growth
6.3% margin — thin
Elevated debt levels
Weak financial health signals
Smaller company, higher risk/reward
ROE of 5.5% — below average capital efficiency
3.3% margin — thin
Operating margin of 2.8%
Comparative Analysis Report
WallStSmart ResearchBull Case : GAP
The strongest argument for GAP centers on P/E Ratio, EPS Growth, Return on Equity. PEG of 1.23 suggests the stock is reasonably priced for its growth.
Bull Case : SCVL
The strongest argument for SCVL centers on Price/Book, Altman Z-Score, PEG Ratio. PEG of 0.95 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 : SCVL
The primary concerns for SCVL are Market Cap, Return on Equity, Profit Margin. Thin 3.3% margins leave little buffer for downturns.
Key Dynamics to Monitor
GAP carries more volatility with a beta of 2.01 — expect wider price swings.
GAP is growing revenue faster at 1.0% — sustainability is the question.
GAP generates stronger free cash flow (78M), providing more financial flexibility.
Monitor APPAREL RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
GAP scores higher overall (69/100 vs 52/100). 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.
Shoe Carnival Inc
CONSUMER CYCLICAL · APPAREL RETAIL · USA
Shoe Carnival, Inc., is a family footwear retailer in the United States. The company is headquartered in Evansville, Indiana.
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