WallStSmart

Caleres Inc (CAL)vsThe Gap, Inc. (GAP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

The Gap, Inc. generates 438% more annual revenue ($15.33B vs $2.85B). GAP leads profitability with a 8.1% profit margin vs 1.9%. CAL appears more attractively valued with a PEG of 0.82. GAP earns a higher WallStSmart Score of 68/100 (B-).

CAL

Strong Buy

66

out of 100

Grade: B-

Growth: 6.0Profit: 4.0Value: 7.7Quality: 4.5
Piotroski: 2/9Altman Z: 1.99

GAP

Strong Buy

68

out of 100

Grade: B-

Growth: 4.7Profit: 6.5Value: 6.0Quality: 5.5
Piotroski: 3/9Altman Z: 2.41
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for CAL.

GAPSignificantly Overvalued (-24.0%)

Margin of Safety

-24.0%

Fair Value

$22.14

Current Price

$21.51

$0.63 premium

UndervaluedFair: $22.14Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CAL4 strengths · Avg: 9.5/10
P/E RatioValuation
8.2x10/10

Attractively priced relative to earnings

Price/BookValuation
0.6x10/10

Reasonable price relative to book value

EPS GrowthGrowth
762.0%10/10

Earnings expanding 762.0% YoY

PEG RatioValuation
0.828/10

Growing faster than its price suggests

GAP4 strengths · Avg: 9.3/10
P/E RatioValuation
6.7x10/10

Attractively priced relative to earnings

EPS GrowthGrowth
142.1%10/10

Earnings expanding 142.1% YoY

Return on EquityProfitability
21.5%9/10

Every $100 of equity generates 21 in profit

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Areas to Watch

CAL4 concerns · Avg: 3.3/10
Altman Z-ScoreHealth
1.994/10

Grey zone — moderate risk

Market CapQuality
$431.66M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
0.1%3/10

ROE of 0.1% — below average capital efficiency

Profit MarginProfitability
1.9%3/10

1.9% margin — thin

GAP3 concerns · Avg: 2.7/10
Debt/EquityHealth
1.453/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-2.0%2/10

Revenue declined 2.0%

Comparative Analysis Report

WallStSmart Research

Bull Case : CAL

The strongest argument for CAL centers on P/E Ratio, Price/Book, EPS Growth. PEG of 0.82 suggests the stock is reasonably priced for its growth.

Bull Case : GAP

The strongest argument for GAP centers on P/E Ratio, EPS Growth, Return on Equity. PEG of 1.16 suggests the stock is reasonably priced for its growth.

Bear Case : CAL

The primary concerns for CAL are Altman Z-Score, Market Cap, Return on Equity. Debt-to-equity of 1.55 is elevated, increasing financial risk. Thin 1.9% margins leave little buffer for downturns.

Bear Case : GAP

The primary concerns for GAP are Debt/Equity, Piotroski F-Score, Revenue Growth.

Key Dynamics to Monitor

GAP carries more volatility with a beta of 2.06 — expect wider price swings.

CAL is growing revenue faster at 5.6% — sustainability is the question.

GAP generates stronger free cash flow (183M), providing more financial flexibility.

Monitor APPAREL RETAIL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

GAP scores higher overall (68/100 vs 66/100). Both earn "Strong Buy" and "Strong 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.

Caleres Inc

CONSUMER CYCLICAL · APPAREL RETAIL · USA

Caleres, Inc. is engaged in the retail and wholesale of footwear in the United States, China, Canada, China, and Guam. The company is headquartered in St. Louis, Missouri.

The Gap, Inc.

CONSUMER CYCLICAL · APPAREL RETAIL · USA

The Gap, Inc. (GAP) is a leading global apparel retailer established in 1969, renowned for its strong portfolio of brands, including Gap, Banana Republic, Old Navy, and Athleta. Headquartered in San Francisco and operating in over 40 countries, the company emphasizes quality, style, and value to cater to a diverse customer base. In response to the evolving retail environment, Gap is aggressively pursuing digital transformation and sustainability initiatives, focusing on enhancing its e-commerce capabilities and introducing innovative product offerings to drive growth and maintain its competitive edge in the marketplace.

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