The Gap, Inc. (GAP)vsThe TJX Companies Inc (TJX)
GAP
The Gap, Inc.
$23.63
-0.17%
CONSUMER CYCLICAL · Cap: $9.02B
TJX
The TJX Companies Inc
$154.64
-1.40%
CONSUMER CYCLICAL · Cap: $174.15B
Smart Verdict
WallStSmart Research — data-driven comparison
The TJX Companies Inc generates 293% more annual revenue ($60.37B vs $15.37B). TJX leads profitability with a 9.1% profit margin vs 5.3%. GAP appears more attractively valued with a PEG of 1.45. TJX earns a higher WallStSmart Score of 56/100 (C).
GAP
Buy55
out of 100
Grade: C
TJX
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+9.1%
Fair Value
$30.21
Current Price
$23.63
$6.58 discount
Margin of Safety
-7.0%
Fair Value
$147.33
Current Price
$154.64
$7.31 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
Every $100 of equity generates 59 in profit
Safe zone — low bankruptcy risk
Large-cap with strong market position
Earnings expanding 27.9% YoY
Generating 2.6B in free cash flow
Areas to Watch
2.1% revenue growth
5.3% margin — thin
Operating margin of 4.9%
Weak financial health signals
Premium valuation, high expectations priced in
Trading at 16.8x book value
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : GAP
The strongest argument for GAP centers on P/E Ratio, Return on Equity, Price/Book. PEG of 1.45 suggests the stock is reasonably priced for its growth.
Bull Case : TJX
The strongest argument for TJX centers on Return on Equity, Altman Z-Score, Market Cap.
Bear Case : GAP
The primary concerns for GAP are Revenue Growth, Profit Margin, Operating Margin.
Bear Case : TJX
The primary concerns for TJX are P/E Ratio, Price/Book, PEG Ratio.
Key Dynamics to Monitor
GAP carries more volatility with a beta of 2.25 — expect wider price swings.
TJX is growing revenue faster at 8.5% — sustainability is the question.
TJX generates stronger free cash flow (2.6B), providing more financial flexibility.
Monitor APPAREL RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TJX scores higher overall (56/100 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 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.
The TJX Companies Inc
CONSUMER CYCLICAL · APPAREL RETAIL · USA
The TJX Companies, Inc. (abbreviated TJX) is an American multinational off-price department store corporation, headquartered in Framingham, Massachusetts.
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