The Gap, Inc. (GAP)vsUniversal Corporation (UVV)
GAP
The Gap, Inc.
$23.37
-2.22%
CONSUMER CYCLICAL · Cap: $8.73B
UVV
Universal Corporation
$53.70
-0.11%
CONSUMER DEFENSIVE · Cap: $1.34B
Smart Verdict
WallStSmart Research — data-driven comparison
The Gap, Inc. generates 428% more annual revenue ($15.37B vs $2.91B). GAP leads profitability with a 5.3% profit margin vs 2.9%. GAP appears more attractively valued with a PEG of 1.39. GAP earns a higher WallStSmart Score of 55/100 (C).
GAP
Buy55
out of 100
Grade: C
UVV
Hold45
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+9.1%
Fair Value
$30.20
Current Price
$23.37
$6.83 discount
Margin of Safety
+33.4%
Fair Value
$79.32
Current Price
$53.70
$25.62 discount
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
Reasonable price relative to book value
Attractively priced relative to earnings
Areas to Watch
2.1% revenue growth
5.3% margin — thin
Operating margin of 4.9%
Weak financial health signals
Smaller company, higher risk/reward
ROE of 7.0% — below average capital efficiency
2.9% margin — thin
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 1.39 suggests the stock is reasonably priced for its growth.
Bull Case : UVV
The strongest argument for UVV centers on Price/Book, P/E Ratio.
Bear Case : GAP
The primary concerns for GAP are Revenue Growth, Profit Margin, Operating Margin.
Bear Case : UVV
The primary concerns for UVV are Market Cap, Return on Equity, Profit Margin. Thin 2.9% margins leave little buffer for downturns.
Key Dynamics to Monitor
GAP carries more volatility with a beta of 2.08 — expect wider price swings.
GAP is growing revenue faster at 2.1% — 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 45/100). UVV offers better value entry with a 33.4% margin of safety. 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 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.
Universal Corporation
CONSUMER DEFENSIVE · TOBACCO · USA
Universal Corporation processes and supplies leaf tobacco and plant ingredients worldwide. The company is headquartered in Richmond, Virginia.
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