WallStSmart

The Gap, Inc. (GAP)vsGenesco Inc (GCO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

The Gap, Inc. generates 531% more annual revenue ($15.37B vs $2.44B). GAP leads profitability with a 5.3% profit margin vs 0.5%. GCO appears more attractively valued with a PEG of 0.68. GCO earns a higher WallStSmart Score of 64/100 (C+).

GAP

Buy

55

out of 100

Grade: C

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

GCO

Buy

64

out of 100

Grade: C+

Growth: 8.7Profit: 4.5Value: 6.7Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GAPSignificantly Overvalued (-89.6%)

Margin of Safety

-89.6%

Fair Value

$14.48

Current Price

$24.93

$10.45 premium

UndervaluedFair: $14.48Overvalued

Intrinsic value data unavailable for GCO.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GAP3 strengths · Avg: 9.0/10
P/E RatioValuation
12.0x10/10

Attractively priced relative to earnings

Return on EquityProfitability
23.1%9/10

Every $100 of equity generates 23 in profit

Price/BookValuation
2.4x8/10

Reasonable price relative to book value

GCO3 strengths · Avg: 8.7/10
Price/BookValuation
0.5x10/10

Reasonable price relative to book value

PEG RatioValuation
0.688/10

Growing faster than its price suggests

EPS GrowthGrowth
41.6%8/10

Earnings expanding 41.6% 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

GCO3 concerns · Avg: 3.0/10
Market CapQuality
$268.16M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
2.4%3/10

ROE of 2.4% — below average capital efficiency

Profit MarginProfitability
0.5%3/10

0.5% margin — thin

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 : GCO

The strongest argument for GCO centers on Price/Book, PEG Ratio, EPS Growth. PEG of 0.68 suggests the stock is reasonably priced for its growth.

Bear Case : GAP

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

Bear Case : GCO

The primary concerns for GCO are Market Cap, Return on Equity, Profit Margin. Thin 0.5% margins leave little buffer for downturns.

Key Dynamics to Monitor

GAP carries more volatility with a beta of 2.24 — expect wider price swings.

GCO is growing revenue faster at 7.2% — sustainability is the question.

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

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

Bottom Line

GCO scores higher overall (64/100 vs 55/100). 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 leading global apparel retailer founded in 1969, recognized for its portfolio of well-known brands such as Gap, Banana Republic, Old Navy, and Athleta. Headquartered in San Francisco, California, the company operates in over 40 countries and is dedicated to providing quality, value, and style to a diverse customer base. Emphasizing digital transformation and sustainability, Gap is expanding its e-commerce capabilities while focusing on innovative product development and strategic growth initiatives to maintain its competitive edge in the ever-evolving retail sector.

Genesco Inc

CONSUMER CYCLICAL · APPAREL RETAIL · USA

Genesco Inc. is a retailer and wholesaler of footwear, apparel and accessories. The company is headquartered in Nashville, Tennessee.

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