The Gap, Inc. (GAP)vsUBS Group AG (UBS)
GAP
The Gap, Inc.
$24.93
-2.20%
CONSUMER CYCLICAL · Cap: $9.50B
UBS
UBS Group AG
$38.10
+3.00%
FINANCIAL SERVICES · Cap: $116.88B
Smart Verdict
WallStSmart Research — data-driven comparison
UBS Group AG generates 223% more annual revenue ($49.60B vs $15.37B). UBS leads profitability with a 15.7% profit margin vs 5.3%. UBS appears more attractively valued with a PEG of 0.44. UBS earns a higher WallStSmart Score of 77/100 (B+).
GAP
Buy55
out of 100
Grade: C
UBS
Strong Buy77
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
+61.2%
Fair Value
$109.04
Current Price
$38.10
$70.94 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
Reasonable price relative to book value
Strong operational efficiency at 54.6%
Earnings expanding 58.0% YoY
Large-cap with strong market position
Attractively priced relative to earnings
Areas to Watch
2.1% revenue growth
5.3% margin — thin
Operating margin of 4.9%
Weak financial health signals
Negative free cash flow — burning cash
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 : UBS
The strongest argument for UBS centers on PEG Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 15.7% and operating margin at 54.6%. Revenue growth of 12.4% demonstrates continued momentum.
Bear Case : GAP
The primary concerns for GAP are Revenue Growth, Profit Margin, Operating Margin.
Bear Case : UBS
The primary concerns for UBS are Free Cash Flow.
Key Dynamics to Monitor
GAP profiles as a value stock while UBS is a mature play — different risk/reward profiles.
GAP carries more volatility with a beta of 2.24 — expect wider price swings.
UBS is growing revenue faster at 12.4% — sustainability is the question.
GAP generates stronger free cash flow (696M), providing more financial flexibility.
Bottom Line
UBS scores higher overall (77/100 vs 55/100), backed by strong 15.7% margins and 12.4% 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.
UBS Group AG
FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA
UBS Group AG, provides advice and financial solutions to private, institutional and corporate clients worldwide. The company is headquartered in Zurich, Switzerland.
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