The Gap, Inc. (GAP)vsUrban Outfitters Inc (URBN)
GAP
The Gap, Inc.
$20.54
-1.58%
CONSUMER CYCLICAL · Cap: $7.86B
URBN
Urban Outfitters Inc
$75.01
-1.09%
CONSUMER CYCLICAL · Cap: $6.80B
Smart Verdict
WallStSmart Research — data-driven comparison
The Gap, Inc. generates 137% more annual revenue ($15.33B vs $6.47B). URBN leads profitability with a 8.8% profit margin vs 8.1%. GAP appears more attractively valued with a PEG of 1.16. URBN earns a higher WallStSmart Score of 71/100 (B).
GAP
Strong Buy68
out of 100
Grade: B-
URBN
Strong Buy71
out of 100
Grade: B
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
+4.0%
Fair Value
$73.42
Current Price
$75.01
$1.59 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
Earnings expanding 75.9% YoY
Safe zone — low bankruptcy risk
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
Elevated debt levels
Weak financial health signals
Revenue declined 2.0%
No major concerns identified
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 : URBN
The strongest argument for URBN centers on EPS Growth, Altman Z-Score, P/E Ratio. Revenue growth of 10.4% demonstrates continued momentum. PEG of 1.35 suggests the stock is reasonably priced for its growth.
Bear Case : GAP
The primary concerns for GAP are Debt/Equity, Piotroski F-Score, Revenue Growth.
Bear Case : URBN
No major red flags identified for URBN, but monitor valuation.
Key Dynamics to Monitor
GAP carries more volatility with a beta of 2.06 — expect wider price swings.
URBN is growing revenue faster at 10.4% — sustainability is the question.
URBN generates stronger free cash flow (301M), providing more financial flexibility.
Monitor APPAREL RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
URBN scores higher overall (71/100 vs 68/100) and 10.4% revenue growth. Both earn "Strong Buy" and "Strong 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.
Urban Outfitters Inc
CONSUMER CYCLICAL · APPAREL RETAIL · USA
Urban Outfitters, Inc. is engaged in the retail and wholesale of general consumer products. The company is headquartered in Philadelphia, Pennsylvania.
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