The Gap, Inc. (GAP)vsLands’ End Inc (LE)
GAP
The Gap, Inc.
$22.00
+1.38%
CONSUMER CYCLICAL · Cap: $8.12B
LE
Lands’ End Inc
$9.42
+0.96%
CONSUMER CYCLICAL · Cap: $282.74M
Smart Verdict
WallStSmart Research — data-driven comparison
The Gap, Inc. generates 1060% more annual revenue ($15.33B vs $1.32B). LE leads profitability with a 26.6% profit margin vs 8.1%. LE appears more attractively valued with a PEG of 0.68. GAP earns a higher WallStSmart Score of 68/100 (B-).
GAP
Strong Buy68
out of 100
Grade: B-
LE
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-24.4%
Fair Value
$22.08
Current Price
$22.00
$0.08 premium
Margin of Safety
-28.7%
Fair Value
$13.73
Current Price
$9.42
$4.31 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Earnings expanding 142.1% YoY
Every $100 of equity generates 21 in profit
Reasonable price relative to book value
Attractively priced relative to earnings
Reasonable price relative to book value
Every $100 of equity generates 69 in profit
Keeps 27 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Growing faster than its price suggests
Areas to Watch
Elevated debt levels
Weak financial health signals
Revenue declined 2.0%
2.7% revenue growth
Smaller company, higher risk/reward
Weak financial health signals
Earnings declined 32.7%
Comparative Analysis Report
WallStSmart ResearchBull Case : GAP
The strongest argument for GAP centers on P/E Ratio, EPS Growth, Return on Equity. PEG of 1.17 suggests the stock is reasonably priced for its growth.
Bull Case : LE
The strongest argument for LE centers on P/E Ratio, Price/Book, Return on Equity. Profitability is solid with margins at 26.6% and operating margin at 5.2%. PEG of 0.68 suggests the stock is reasonably priced for its growth.
Bear Case : GAP
The primary concerns for GAP are Debt/Equity, Piotroski F-Score, Revenue Growth.
Bear Case : LE
The primary concerns for LE are Revenue Growth, Market Cap, Piotroski F-Score.
Key Dynamics to Monitor
LE carries more volatility with a beta of 2.26 — expect wider price swings.
LE is growing revenue faster at 2.7% — 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.
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.
Lands’ End Inc
CONSUMER CYCLICAL · APPAREL RETAIL · USA
Lands' End, Inc. is a single-channel retailer of casual clothing, accessories, footwear, and home products in the United States, Europe, Asia, and internationally. The company is headquartered in Dodgeville, Wisconsin.
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