The Gap, Inc. (GAP)vsUrban Outfitters Inc (URBN)
GAP
The Gap, Inc.
$21.56
0.00%
CONSUMER CYCLICAL · Cap: $7.88B
URBN
Urban Outfitters Inc
$71.30
-2.21%
CONSUMER CYCLICAL · Cap: $6.59B
Smart Verdict
WallStSmart Research — data-driven comparison
The Gap, Inc. generates 144% more annual revenue ($15.40B vs $6.32B). URBN leads profitability with a 7.5% profit margin vs 6.3%. GAP appears more attractively valued with a PEG of 1.28. GAP earns a higher WallStSmart Score of 69/100 (B-).
GAP
Strong Buy69
out of 100
Grade: B-
URBN
Buy63
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-25.8%
Fair Value
$21.83
Current Price
$21.56
$0.27 premium
Margin of Safety
+2.0%
Fair Value
$71.98
Current Price
$71.30
$0.68 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Earnings expanding 76.5% YoY
Every $100 of equity generates 21 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
1.0% revenue growth
6.3% margin — thin
Elevated debt levels
Weak financial health signals
7.5% margin — thin
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : GAP
The strongest argument for GAP centers on P/E Ratio, EPS Growth, Return on Equity. PEG of 1.28 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 11.4% demonstrates continued momentum. PEG of 1.34 suggests the stock is reasonably priced for its growth.
Bear Case : GAP
The primary concerns for GAP are Revenue Growth, Profit Margin, Debt/Equity. Debt-to-equity of 1.54 is elevated, increasing financial risk.
Bear Case : URBN
The primary concerns for URBN are Profit Margin, Free Cash Flow.
Key Dynamics to Monitor
GAP carries more volatility with a beta of 2.01 — expect wider price swings.
URBN is growing revenue faster at 11.4% — sustainability is the question.
GAP generates stronger free cash flow (78M), providing more financial flexibility.
Monitor APPAREL RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
GAP scores higher overall (69/100 vs 63/100). 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 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.
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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