WallStSmart

The Gap, Inc. (GAP)vsWilliams Companies Inc (WMB)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

The Gap, Inc. generates 27% more annual revenue ($15.37B vs $12.11B). WMB leads profitability with a 23.1% profit margin vs 5.3%. GAP appears more attractively valued with a PEG of 1.39. WMB earns a higher WallStSmart Score of 65/100 (C+).

GAP

Buy

55

out of 100

Grade: C

Growth: 2.7Profit: 5.5Value: 7.3Quality: 5.8
Piotroski: 2/9Altman Z: 2.38

WMB

Buy

65

out of 100

Grade: C+

Growth: 6.0Profit: 8.0Value: 4.3Quality: 3.3
Piotroski: 3/9Altman Z: 0.37
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GAPUndervalued (+9.1%)

Margin of Safety

+9.1%

Fair Value

$30.20

Current Price

$23.37

$6.83 discount

UndervaluedFair: $30.20Overvalued

Intrinsic value data unavailable for WMB.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GAP3 strengths · Avg: 9.0/10
P/E RatioValuation
11.2x10/10

Attractively priced relative to earnings

Return on EquityProfitability
23.1%9/10

Every $100 of equity generates 23 in profit

Price/BookValuation
2.3x8/10

Reasonable price relative to book value

WMB4 strengths · Avg: 9.0/10
Operating MarginProfitability
33.6%10/10

Strong operational efficiency at 33.6%

Market CapQuality
$89.22B9/10

Large-cap with strong market position

Profit MarginProfitability
23.1%9/10

Keeps 23 of every $100 in revenue as profit

EPS GrowthGrowth
25.0%8/10

Earnings expanding 25.0% YoY

Areas to Watch

GAP4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
2.1%4/10

2.1% revenue growth

Profit MarginProfitability
5.3%3/10

5.3% margin — thin

Operating MarginProfitability
4.9%3/10

Operating margin of 4.9%

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

WMB4 concerns · Avg: 3.3/10
PEG RatioValuation
2.484/10

Expensive relative to growth rate

P/E RatioValuation
32.0x4/10

Premium valuation, high expectations priced in

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Altman Z-ScoreHealth
0.372/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull 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 : WMB

The strongest argument for WMB centers on Operating Margin, Market Cap, Profit Margin. Profitability is solid with margins at 23.1% and operating margin at 33.6%.

Bear Case : GAP

The primary concerns for GAP are Revenue Growth, Profit Margin, Operating Margin.

Bear Case : WMB

The primary concerns for WMB are PEG Ratio, P/E Ratio, Piotroski F-Score.

Key Dynamics to Monitor

GAP profiles as a value stock while WMB is a mature play — different risk/reward profiles.

GAP carries more volatility with a beta of 2.08 — expect wider price swings.

WMB is growing revenue faster at 9.0% — sustainability is the question.

GAP generates stronger free cash flow (696M), providing more financial flexibility.

Bottom Line

WMB scores higher overall (65/100 vs 55/100), backed by strong 23.1% margins. 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.

Williams Companies Inc

ENERGY · OIL & GAS MIDSTREAM · USA

The Williams Companies, Inc., is an American energy company based in Tulsa, Oklahoma. Its core business is natural gas processing and transportation, with additional petroleum and electricity generation assets.

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