The Gap, Inc. (GAP)vsLands’ End Inc (LE)
GAP
The Gap, Inc.
$24.93
-2.20%
CONSUMER CYCLICAL · Cap: $9.50B
LE
Lands’ End Inc
$13.34
+6.21%
CONSUMER CYCLICAL · Cap: $369.65M
Smart Verdict
WallStSmart Research — data-driven comparison
The Gap, Inc. generates 1051% more annual revenue ($15.37B vs $1.34B). GAP leads profitability with a 5.3% profit margin vs 0.4%. LE appears more attractively valued with a PEG of 0.68. GAP earns a higher WallStSmart Score of 55/100 (C).
GAP
Buy55
out of 100
Grade: C
LE
Hold46
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-89.6%
Fair Value
$14.48
Current Price
$24.93
$10.45 premium
Margin of Safety
-1348.4%
Fair Value
$1.22
Current Price
$13.34
$12.12 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
Growing faster than its price suggests
Reasonable price relative to book value
Areas to Watch
2.1% revenue growth
5.3% margin — thin
Operating margin of 4.9%
Weak financial health signals
4.7% revenue growth
Smaller company, higher risk/reward
ROE of 2.3% — below average capital efficiency
0.4% margin — thin
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 : LE
The strongest argument for LE centers on PEG Ratio, Price/Book. 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 : LE
The primary concerns for LE are Revenue Growth, Market Cap, Return on Equity. A P/E of 67.2x leaves little room for execution misses. Thin 0.4% margins leave little buffer for downturns.
Key Dynamics to Monitor
LE carries more volatility with a beta of 2.42 — expect wider price swings.
LE is growing revenue faster at 4.7% — 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
GAP scores higher overall (55/100 vs 46/100). Both earn "Buy" and "Hold" 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.
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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