WallStSmart

The Gap, Inc. (GAP)vsTillys Inc (TLYS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

The Gap, Inc. generates 2598% more annual revenue ($15.40B vs $570.69M). GAP leads profitability with a 6.3% profit margin vs -0.6%. TLYS appears more attractively valued with a PEG of 0.88. GAP earns a higher WallStSmart Score of 69/100 (B-).

GAP

Strong Buy

69

out of 100

Grade: B-

Growth: 5.3Profit: 6.0Value: 6.0Quality: 5.5
Piotroski: 3/9Altman Z: 2.41

TLYS

Hold

48

out of 100

Grade: D+

Growth: 4.0Profit: 2.0Value: 6.0Quality: 4.0
Piotroski: 4/9Altman Z: 1.49
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GAPSignificantly Overvalued (-26.3%)

Margin of Safety

-26.3%

Fair Value

$21.75

Current Price

$20.29

$1.46 premium

UndervaluedFair: $21.75Overvalued

Intrinsic value data unavailable for TLYS.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GAP4 strengths · Avg: 9.3/10
P/E RatioValuation
8.1x10/10

Attractively priced relative to earnings

EPS GrowthGrowth
76.5%10/10

Earnings expanding 76.5% YoY

Return on EquityProfitability
21.5%9/10

Every $100 of equity generates 21 in profit

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

TLYS3 strengths · Avg: 8.7/10
Price/BookValuation
1.5x10/10

Reasonable price relative to book value

PEG RatioValuation
0.888/10

Growing faster than its price suggests

Revenue GrowthGrowth
15.9%8/10

15.9% revenue growth

Areas to Watch

GAP4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
1.0%4/10

1.0% revenue growth

Profit MarginProfitability
6.3%3/10

6.3% margin — thin

Debt/EquityHealth
1.543/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

TLYS4 concerns · Avg: 2.3/10
Market CapQuality
$120.73M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-18.8%2/10

ROE of -18.8% — below average capital efficiency

EPS GrowthGrowth
-97.4%2/10

Earnings declined 97.4%

Free Cash FlowQuality
$-5.27M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : GAP

The strongest argument for GAP centers on P/E Ratio, EPS Growth, Return on Equity. PEG of 1.09 suggests the stock is reasonably priced for its growth.

Bull Case : TLYS

The strongest argument for TLYS centers on Price/Book, PEG Ratio, Revenue Growth. Revenue growth of 15.9% demonstrates continued momentum. PEG of 0.88 suggests the stock is reasonably priced for its growth.

Bear Case : GAP

The primary concerns for GAP are Revenue Growth, Profit Margin, Debt/Equity. Debt-to-equity of 1.54 is elevated, increasing financial risk.

Bear Case : TLYS

The primary concerns for TLYS are Market Cap, Return on Equity, EPS Growth. Debt-to-equity of 2.26 is elevated, increasing financial risk.

Key Dynamics to Monitor

GAP profiles as a value stock while TLYS is a growth play — different risk/reward profiles.

GAP carries more volatility with a beta of 2.02 — expect wider price swings.

TLYS is growing revenue faster at 15.9% — sustainability is the question.

GAP generates stronger free cash flow (78M), providing more financial flexibility.

Bottom Line

GAP scores higher overall (69/100 vs 48/100). Both earn "Strong 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. (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.

Tillys Inc

CONSUMER CYCLICAL · APPAREL RETAIL · USA

Tilly's, Inc. is a specialty retailer of casual clothing, footwear, accessories and consumer goods for young men and women and boys and girls in the United States. The company is headquartered in Irvine, California.

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