Burlington Stores Inc (BURL)vsThe Gap, Inc. (GAP)
BURL
Burlington Stores Inc
$317.05
-1.53%
CONSUMER CYCLICAL · Cap: $21.30B
GAP
The Gap, Inc.
$21.56
0.00%
CONSUMER CYCLICAL · Cap: $7.88B
Smart Verdict
WallStSmart Research — data-driven comparison
The Gap, Inc. generates 29% more annual revenue ($15.40B vs $11.91B). GAP leads profitability with a 6.3% profit margin vs 5.2%. GAP appears more attractively valued with a PEG of 1.28. GAP earns a higher WallStSmart Score of 69/100 (B-).
BURL
Buy59
out of 100
Grade: C
GAP
Strong Buy69
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-27.9%
Fair Value
$239.08
Current Price
$317.05
$77.97 premium
Margin of Safety
-25.8%
Fair Value
$21.83
Current Price
$21.56
$0.27 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 34 in profit
Attractively priced relative to earnings
Earnings expanding 76.5% YoY
Every $100 of equity generates 21 in profit
Reasonable price relative to book value
Areas to Watch
Premium valuation, high expectations priced in
Trading at 10.7x book value
Grey zone — moderate risk
5.2% margin — thin
1.0% revenue growth
6.3% margin — thin
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : BURL
The strongest argument for BURL centers on Return on Equity. Revenue growth of 14.1% demonstrates continued momentum.
Bull 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.
Bear Case : BURL
The primary concerns for BURL are P/E Ratio, Price/Book, Altman Z-Score. Debt-to-equity of 3.20 is elevated, increasing financial risk.
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.
Key Dynamics to Monitor
GAP carries more volatility with a beta of 2.01 — expect wider price swings.
BURL is growing revenue faster at 14.1% — 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 59/100). 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.
Burlington Stores Inc
CONSUMER CYCLICAL · APPAREL RETAIL · USA
Burlington Stores, Inc. is a branded apparel retailer in the United States. The company is headquartered in Burlington, New Jersey.
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.
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