The Gap, Inc. (GAP)vsUrban Outfitters Inc (URBN)
GAP
The Gap, Inc.
$23.91
-0.71%
CONSUMER CYCLICAL · Cap: $8.89B
URBN
Urban Outfitters Inc
$63.39
-2.76%
CONSUMER CYCLICAL · Cap: $5.69B
Smart Verdict
WallStSmart Research — data-driven comparison
The Gap, Inc. generates 149% more annual revenue ($15.37B vs $6.17B). URBN leads profitability with a 7.5% profit margin vs 5.3%. URBN appears more attractively valued with a PEG of 1.03. URBN earns a higher WallStSmart Score of 60/100 (C).
GAP
Buy55
out of 100
Grade: C
URBN
Buy60
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-89.6%
Fair Value
$14.48
Current Price
$23.91
$9.43 premium
Margin of Safety
-110.8%
Fair Value
$33.46
Current Price
$63.39
$29.93 premium
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
Safe zone — low bankruptcy risk
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
2.1% revenue growth
5.3% margin — thin
Operating margin of 4.9%
Weak financial health signals
7.5% margin — thin
Earnings declined 17.4%
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 : URBN
The strongest argument for URBN centers on Altman Z-Score, P/E Ratio, Price/Book. Revenue growth of 10.1% demonstrates continued momentum. PEG of 1.03 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 : URBN
The primary concerns for URBN are Profit Margin, EPS Growth.
Key Dynamics to Monitor
GAP carries more volatility with a beta of 2.24 — expect wider price swings.
URBN is growing revenue faster at 10.1% — sustainability is the question.
GAP generates stronger free cash flow (696M), providing more financial flexibility.
Monitor APPAREL RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
URBN scores higher overall (60/100 vs 55/100) and 10.1% revenue growth. 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 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.
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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