The Gap, Inc. (GAP)vsUnitedHealth Group Incorporated (UNH)
GAP
The Gap, Inc.
$23.37
-2.22%
CONSUMER CYCLICAL · Cap: $8.73B
UNH
UnitedHealth Group Incorporated
$379.98
+2.77%
HEALTHCARE · Cap: $335.78B
Smart Verdict
WallStSmart Research — data-driven comparison
UnitedHealth Group Incorporated generates 2827% more annual revenue ($449.71B vs $15.37B). GAP leads profitability with a 5.3% profit margin vs 2.7%. UNH appears more attractively valued with a PEG of 1.27. GAP earns a higher WallStSmart Score of 55/100 (C).
GAP
Buy55
out of 100
Grade: C
UNH
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+9.1%
Fair Value
$30.20
Current Price
$23.37
$6.83 discount
Margin of Safety
+40.6%
Fair Value
$639.69
Current Price
$379.98
$259.71 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
Mega-cap, among the largest globally
Generating 8.1B in free cash flow
Areas to Watch
2.1% revenue growth
5.3% margin — thin
Operating margin of 4.9%
Weak financial health signals
Moderate valuation
2.0% revenue growth
0.7% earnings growth
2.7% margin — thin
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 : UNH
The strongest argument for UNH centers on Market Cap, Free Cash Flow. PEG of 1.27 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 : UNH
The primary concerns for UNH are P/E Ratio, Revenue Growth, EPS Growth. Thin 2.7% margins leave little buffer for downturns.
Key Dynamics to Monitor
GAP carries more volatility with a beta of 2.08 — expect wider price swings.
GAP is growing revenue faster at 2.1% — sustainability is the question.
UNH generates stronger free cash flow (8.1B), providing more financial flexibility.
Monitor APPAREL RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
GAP scores higher overall (55/100 vs 54/100). UNH offers better value entry with a 40.6% margin of safety. Both earn "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 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.
UnitedHealth Group Incorporated
HEALTHCARE · HEALTHCARE PLANS · USA
UnitedHealth Group Incorporated is an American for-profit multinational managed healthcare and insurance company based in Minnetonka, Minnesota. It offers health care products and insurance services. In 2020, it was the second-largest healthcare company (behind CVS Health) by revenue with $257.1 billion, and the largest insurance company by net premiums. UnitedHealthcare revenues comprise 80% of the Group's overall revenue.
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