The Gap, Inc. (GAP)vsTurning Point Brands Inc (TPB)
GAP
The Gap, Inc.
$24.93
-2.20%
CONSUMER CYCLICAL · Cap: $9.50B
TPB
Turning Point Brands Inc
$88.39
+1.80%
CONSUMER DEFENSIVE · Cap: $1.69B
Smart Verdict
WallStSmart Research — data-driven comparison
The Gap, Inc. generates 3218% more annual revenue ($15.37B vs $463.06M). TPB leads profitability with a 12.6% profit margin vs 5.3%. TPB appears more attractively valued with a PEG of 0.05. TPB earns a higher WallStSmart Score of 73/100 (B).
GAP
Buy55
out of 100
Grade: C
TPB
Strong Buy73
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-89.6%
Fair Value
$14.48
Current Price
$24.93
$10.45 premium
Margin of Safety
+12.1%
Fair Value
$145.55
Current Price
$88.39
$57.16 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Every $100 of equity generates 23 in profit
Reasonable price relative to book value
Growing faster than its price suggests
Earnings expanding 194.5% YoY
Every $100 of equity generates 24 in profit
Revenue surging 29.2% year-over-year
Areas to Watch
2.1% revenue growth
5.3% margin — thin
Operating margin of 4.9%
Weak financial health signals
Moderate valuation
Smaller company, higher risk/reward
Comparative Analysis Report
WallStSmart ResearchBull Case : GAP
The strongest argument for GAP centers on P/E Ratio, Return on Equity, Price/Book. PEG of 1.39 suggests the stock is reasonably priced for its growth.
Bull Case : TPB
The strongest argument for TPB centers on PEG Ratio, EPS Growth, Return on Equity. Revenue growth of 29.2% demonstrates continued momentum. PEG of 0.05 suggests the stock is reasonably priced for its growth.
Bear Case : GAP
The primary concerns for GAP are Revenue Growth, Profit Margin, Operating Margin.
Bear Case : TPB
The primary concerns for TPB are P/E Ratio, Market Cap.
Key Dynamics to Monitor
GAP profiles as a value stock while TPB is a growth play — different risk/reward profiles.
GAP carries more volatility with a beta of 2.24 — expect wider price swings.
TPB is growing revenue faster at 29.2% — sustainability is the question.
GAP generates stronger free cash flow (696M), providing more financial flexibility.
Bottom Line
TPB scores higher overall (73/100 vs 55/100) and 29.2% revenue growth. 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. is a leading global apparel retailer founded in 1969, recognized for its portfolio of well-known brands such as Gap, Banana Republic, Old Navy, and Athleta. Headquartered in San Francisco, California, the company operates in over 40 countries and is dedicated to providing quality, value, and style to a diverse customer base. Emphasizing digital transformation and sustainability, Gap is expanding its e-commerce capabilities while focusing on innovative product development and strategic growth initiatives to maintain its competitive edge in the ever-evolving retail sector.
Turning Point Brands Inc
CONSUMER DEFENSIVE · TOBACCO · USA
Turning Point Brands, Inc. manufactures, markets and distributes branded consumer products. The company is headquartered in Louisville, Kentucky.
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