The Gap, Inc. (GAP)vsThe TJX Companies Inc (TJX)
GAP
The Gap, Inc.
$20.54
-1.58%
CONSUMER CYCLICAL · Cap: $7.86B
TJX
The TJX Companies Inc
$127.24
+0.55%
CONSUMER CYCLICAL · Cap: $138.62B
Smart Verdict
WallStSmart Research — data-driven comparison
The TJX Companies Inc generates 307% more annual revenue ($62.36B vs $15.33B). TJX leads profitability with a 9.7% 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-
TJX
Buy58
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
+9.6%
Fair Value
$140.80
Current Price
$127.24
$13.56 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
Every $100 of equity generates 57 in profit
Safe zone — low bankruptcy risk
Large-cap with strong market position
Earnings expanding 23.6% YoY
Generating 1.7B in free cash flow
Areas to Watch
Elevated debt levels
Weak financial health signals
Revenue declined 2.0%
Expensive relative to growth rate
Trading at 13.5x book value
Elevated debt levels
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 : TJX
The strongest argument for TJX centers on Return on Equity, Altman Z-Score, Market Cap.
Bear Case : GAP
The primary concerns for GAP are Debt/Equity, Piotroski F-Score, Revenue Growth.
Bear Case : TJX
The primary concerns for TJX are PEG Ratio, Price/Book, Debt/Equity.
Key Dynamics to Monitor
GAP carries more volatility with a beta of 2.06 — expect wider price swings.
TJX is growing revenue faster at 5.4% — sustainability is the question.
TJX generates stronger free cash flow (1.7B), providing more financial flexibility.
Monitor APPAREL RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
GAP scores higher overall (68/100 vs 58/100). 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.
The TJX Companies Inc
CONSUMER CYCLICAL · APPAREL RETAIL · USA
The TJX Companies, Inc. (abbreviated TJX) is an American multinational off-price department store corporation, headquartered in Framingham, Massachusetts.
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