The Gap, Inc. (GAP)vsWestinghouse Air Brake Technologies Corp (WAB)
GAP
The Gap, Inc.
$24.93
-2.20%
CONSUMER CYCLICAL · Cap: $9.50B
WAB
Westinghouse Air Brake Technologies Corp
$248.32
+1.10%
INDUSTRIALS · Cap: $41.99B
Smart Verdict
WallStSmart Research — data-driven comparison
The Gap, Inc. generates 38% more annual revenue ($15.37B vs $11.17B). WAB leads profitability with a 10.5% profit margin vs 5.3%. WAB appears more attractively valued with a PEG of 1.37. WAB earns a higher WallStSmart Score of 58/100 (C).
GAP
Buy55
out of 100
Grade: C
WAB
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-89.6%
Fair Value
$14.48
Current Price
$24.93
$10.45 premium
Margin of Safety
-447.9%
Fair Value
$46.44
Current Price
$248.32
$201.88 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
No standout strengths identified
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
Distress zone — elevated risk
Weak financial health signals
Earnings declined 3.8%
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 : WAB
Revenue growth of 14.8% demonstrates continued momentum. PEG of 1.37 suggests the stock is reasonably priced for its growth.
Bear Case : GAP
The primary concerns for GAP are Revenue Growth, Profit Margin, Operating Margin.
Bear Case : WAB
The primary concerns for WAB are P/E Ratio, Altman Z-Score, Piotroski F-Score.
Key Dynamics to Monitor
GAP carries more volatility with a beta of 2.24 — expect wider price swings.
WAB is growing revenue faster at 14.8% — sustainability is the question.
WAB generates stronger free cash flow (870M), providing more financial flexibility.
Monitor APPAREL RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
WAB scores higher overall (58/100 vs 55/100) and 14.8% revenue growth. 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 leading global apparel retailer founded in 1969, recognized for its portfolio of well-known brands such as Gap, Banana Republic, Old Navy, and Athleta. Headquartered in San Francisco, California, the company operates in over 40 countries and is dedicated to providing quality, value, and style to a diverse customer base. Emphasizing digital transformation and sustainability, Gap is expanding its e-commerce capabilities while focusing on innovative product development and strategic growth initiatives to maintain its competitive edge in the ever-evolving retail sector.
Westinghouse Air Brake Technologies Corp
INDUSTRIALS · RAILROADS · USA
Wabtec Corporation (derived from Westinghouse Air Brake Technologies Corporation) is an American company formed by the merger of the Westinghouse Air Brake Company (WABCO) and MotivePower Industries Corporation in 1999. It is headquartered in Pittsburgh, Pennsylvania.
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