The Gap, Inc. (GAP)vsToyota Motor Corporation ADR (TM)
GAP
The Gap, Inc.
$23.37
-2.22%
CONSUMER CYCLICAL · Cap: $8.73B
TM
Toyota Motor Corporation ADR
$187.53
-0.78%
CONSUMER CYCLICAL · Cap: $230.96B
Smart Verdict
WallStSmart Research — data-driven comparison
Toyota Motor Corporation ADR generates 328227% more annual revenue ($50.45T vs $15.37B). TM leads profitability with a 7.3% profit margin vs 5.3%. GAP appears more attractively valued with a PEG of 1.39. TM earns a higher WallStSmart Score of 55/100 (C).
GAP
Buy55
out of 100
Grade: C
TM
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+9.1%
Fair Value
$30.20
Current Price
$23.37
$6.83 discount
Intrinsic value data unavailable for TM.
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
Mega-cap, among the largest globally
Attractively priced relative to earnings
Generating 592.1B in free cash flow
Areas to Watch
2.1% revenue growth
5.3% margin — thin
Operating margin of 4.9%
Weak financial health signals
Expensive relative to growth rate
Trading at 16.0x book value
7.3% margin — thin
Earnings declined 42.3%
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 : TM
The strongest argument for TM centers on Market Cap, P/E Ratio, Free Cash Flow.
Bear Case : GAP
The primary concerns for GAP are Revenue Growth, Profit Margin, Operating Margin.
Bear Case : TM
The primary concerns for TM are PEG Ratio, Price/Book, Profit Margin.
Key Dynamics to Monitor
GAP carries more volatility with a beta of 2.08 — expect wider price swings.
TM is growing revenue faster at 8.6% — sustainability is the question.
TM generates stronger free cash flow (592.1B), providing more financial flexibility.
Monitor APPAREL RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
GAP scores higher overall (55/100 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.
Toyota Motor Corporation ADR
CONSUMER CYCLICAL · AUTO MANUFACTURERS · USA
Toyota Motor Corporation designs, manufactures, assembles and sells passenger cars, minivans and commercial vehicles, and related parts and accessories. The company is headquartered in Toyota, Japan.
Compare with Other APPAREL RETAIL Stocks
Want to dig deeper into these stocks?