The Gap, Inc. (GAP)vsWest Pharmaceutical Services Inc (WST)
GAP
The Gap, Inc.
$23.37
-2.22%
CONSUMER CYCLICAL · Cap: $8.73B
WST
West Pharmaceutical Services Inc
$325.92
+1.21%
HEALTHCARE · Cap: $22.08B
Smart Verdict
WallStSmart Research — data-driven comparison
The Gap, Inc. generates 377% more annual revenue ($15.37B vs $3.22B). WST leads profitability with a 16.9% profit margin vs 5.3%. GAP appears more attractively valued with a PEG of 1.39. WST earns a higher WallStSmart Score of 67/100 (B-).
GAP
Buy55
out of 100
Grade: C
WST
Strong Buy67
out of 100
Grade: B-
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
-32.4%
Fair Value
$185.95
Current Price
$325.92
$139.97 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
Earnings expanding 56.1% YoY
Safe zone — low bankruptcy risk
Strong operational efficiency at 21.7%
Revenue surging 21.0% year-over-year
Areas to Watch
2.1% revenue growth
5.3% margin — thin
Operating margin of 4.9%
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
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 : WST
The strongest argument for WST centers on EPS Growth, Altman Z-Score, Operating Margin. Profitability is solid with margins at 16.9% and operating margin at 21.7%. Revenue growth of 21.0% demonstrates continued momentum.
Bear Case : GAP
The primary concerns for GAP are Revenue Growth, Profit Margin, Operating Margin.
Bear Case : WST
The primary concerns for WST are PEG Ratio, P/E Ratio. A P/E of 41.8x leaves little room for execution misses.
Key Dynamics to Monitor
GAP profiles as a value stock while WST is a growth play — different risk/reward profiles.
GAP carries more volatility with a beta of 2.08 — expect wider price swings.
WST is growing revenue faster at 21.0% — sustainability is the question.
GAP generates stronger free cash flow (696M), providing more financial flexibility.
Bottom Line
WST scores higher overall (67/100 vs 55/100), backed by strong 16.9% margins and 21.0% revenue growth. 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.
West Pharmaceutical Services Inc
HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA
West Pharmaceutical Services, Inc. is a designer and manufacturer of injectable pharmaceutical packaging and delivery systems. The company is headquartered in Exton, Pennsylvania.
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