WallStSmart

The Gap, Inc. (GAP)vsStitch Fix (SFIX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

The Gap, Inc. generates 1067% more annual revenue ($15.40B vs $1.32B). GAP leads profitability with a 6.3% profit margin vs -1.9%. GAP earns a higher WallStSmart Score of 69/100 (B-).

GAP

Strong Buy

69

out of 100

Grade: B-

Growth: 5.3Profit: 6.0Value: 6.0Quality: 5.5
Piotroski: 3/9Altman Z: 2.40

SFIX

Hold

35

out of 100

Grade: F

Growth: 3.3Profit: 2.0Value: 5.0Quality: 6.0
Piotroski: 4/9Altman Z: 1.86
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GAPSignificantly Overvalued (-25.8%)

Margin of Safety

-25.8%

Fair Value

$21.83

Current Price

$21.56

$0.27 premium

UndervaluedFair: $21.83Overvalued

Intrinsic value data unavailable for SFIX.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GAP4 strengths · Avg: 9.3/10
P/E RatioValuation
8.7x10/10

Attractively priced relative to earnings

EPS GrowthGrowth
76.5%10/10

Earnings expanding 76.5% YoY

Return on EquityProfitability
21.5%9/10

Every $100 of equity generates 21 in profit

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

SFIX1 strengths · Avg: 8.0/10
Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Areas to Watch

GAP4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
1.0%4/10

1.0% revenue growth

Profit MarginProfitability
6.3%3/10

6.3% margin — thin

Debt/EquityHealth
1.543/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

SFIX4 concerns · Avg: 2.8/10
Altman Z-ScoreHealth
1.864/10

Grey zone — moderate risk

Market CapQuality
$466.91M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-11.9%2/10

ROE of -11.9% — below average capital efficiency

EPS GrowthGrowth
-8.3%2/10

Earnings declined 8.3%

Comparative Analysis Report

WallStSmart Research

Bull 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 : SFIX

The strongest argument for SFIX centers on Price/Book.

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 : SFIX

The primary concerns for SFIX are Altman Z-Score, Market Cap, Return on Equity.

Key Dynamics to Monitor

GAP profiles as a value stock while SFIX is a turnaround play — different risk/reward profiles.

SFIX carries more volatility with a beta of 2.30 — expect wider price swings.

SFIX is growing revenue faster at 9.4% — sustainability is the question.

GAP generates stronger free cash flow (78M), providing more financial flexibility.

Bottom Line

GAP scores higher overall (69/100 vs 35/100). Both earn "Strong Buy" and "Hold" 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.

Stitch Fix

CONSUMER CYCLICAL · APPAREL RETAIL · USA

Stitch Fix, Inc. sells a variety of clothing, shoes, and accessories through its website and mobile app in the United States. The company is headquartered in San Francisco, California.

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