The Gap, Inc. (GAP)vsSea Ltd (SE)
GAP
The Gap, Inc.
$21.51
+2.87%
CONSUMER CYCLICAL · Cap: $7.86B
SE
Sea Ltd
$106.24
-1.35%
CONSUMER CYCLICAL · Cap: $65.07B
Smart Verdict
WallStSmart Research — data-driven comparison
Sea Ltd generates 81% more annual revenue ($27.72B vs $15.33B). GAP leads profitability with a 8.1% profit margin vs 5.9%. SE appears more attractively valued with a PEG of 1.04. GAP earns a higher WallStSmart Score of 68/100 (B-).
GAP
Strong Buy68
out of 100
Grade: B-
SE
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-24.0%
Fair Value
$22.14
Current Price
$21.51
$0.63 premium
Margin of Safety
+56.1%
Fair Value
$260.75
Current Price
$106.24
$154.51 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
Revenue surging 48.1% year-over-year
Large-cap with strong market position
Generating 1.1B in free cash flow
Areas to Watch
Elevated debt levels
Weak financial health signals
Revenue declined 2.0%
Distress zone — elevated risk
5.9% margin — thin
Premium valuation, high expectations priced in
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 : SE
The strongest argument for SE centers on Revenue Growth, Market Cap, Free Cash Flow. Revenue growth of 48.1% demonstrates continued momentum. PEG of 1.04 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 : SE
The primary concerns for SE are Altman Z-Score, Profit Margin, P/E Ratio. A P/E of 41.5x leaves little room for execution misses.
Key Dynamics to Monitor
GAP profiles as a value stock while SE is a hypergrowth play — different risk/reward profiles.
GAP carries more volatility with a beta of 2.06 — expect wider price swings.
SE is growing revenue faster at 48.1% — sustainability is the question.
SE generates stronger free cash flow (1.1B), providing more financial flexibility.
Bottom Line
GAP scores higher overall (68/100 vs 56/100). SE offers better value entry with a 56.1% 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.
Sea Ltd
CONSUMER CYCLICAL · INTERNET RETAIL · USA
Sea Limited is engaged in the digital entertainment, e-commerce and digital financial services businesses in Southeast Asia, Latin America, the rest of Asia and internationally. The company is headquartered in Singapore.
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