The Gap, Inc. (GAP)vsU.S. Bancorp (USB)
GAP
The Gap, Inc.
$23.37
-2.22%
CONSUMER CYCLICAL · Cap: $8.73B
USB
U.S. Bancorp
$55.53
+0.40%
FINANCIAL SERVICES · Cap: $85.86B
Smart Verdict
WallStSmart Research — data-driven comparison
U.S. Bancorp generates 73% more annual revenue ($26.65B vs $15.37B). USB leads profitability with a 29.3% profit margin vs 5.3%. GAP appears more attractively valued with a PEG of 1.39. USB earns a higher WallStSmart Score of 71/100 (B).
GAP
Buy55
out of 100
Grade: C
USB
Strong Buy71
out of 100
Grade: B
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 USB.
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
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 37.8%
Large-cap with strong market position
Keeps 29 of every $100 in revenue as profit
Generating 1.3B 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
4.6% revenue growth
Distress zone — elevated risk
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 : USB
The strongest argument for USB centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 29.3% and operating margin at 37.8%.
Bear Case : GAP
The primary concerns for GAP are Revenue Growth, Profit Margin, Operating Margin.
Bear Case : USB
The primary concerns for USB are PEG Ratio, Revenue Growth, Altman Z-Score.
Key Dynamics to Monitor
GAP carries more volatility with a beta of 2.08 — expect wider price swings.
USB is growing revenue faster at 4.6% — sustainability is the question.
USB generates stronger free cash flow (1.3B), providing more financial flexibility.
Monitor APPAREL RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
USB scores higher overall (71/100 vs 55/100), backed by strong 29.3% margins. Both earn "Strong 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.
U.S. Bancorp
FINANCIAL SERVICES · BANKS - REGIONAL · USA
U.S. Bancorp is an American bank holding company based in Minneapolis, Minnesota, and incorporated in Delaware. The company provides banking, investment, mortgage, trust, and payment services products to individuals, businesses, governmental entities, and other financial institutions.
Compare with Other APPAREL RETAIL Stocks
Want to dig deeper into these stocks?