The Gap, Inc. (GAP)vsWestern Digital Corporation (WDC)
GAP
The Gap, Inc.
$23.63
-0.17%
CONSUMER CYCLICAL · Cap: $9.02B
WDC
Western Digital Corporation
$442.36
+2.51%
TECHNOLOGY · Cap: $152.47B
Smart Verdict
WallStSmart Research — data-driven comparison
The Gap, Inc. generates 30% more annual revenue ($15.37B vs $11.78B). WDC leads profitability with a 55.3% profit margin vs 5.3%. WDC appears more attractively valued with a PEG of 0.87. WDC earns a higher WallStSmart Score of 79/100 (B+).
GAP
Buy55
out of 100
Grade: C
WDC
Strong Buy79
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+9.1%
Fair Value
$30.21
Current Price
$23.63
$6.58 discount
Intrinsic value data unavailable for WDC.
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
Every $100 of equity generates 86 in profit
Keeps 55 of every $100 in revenue as profit
Strong operational efficiency at 37.0%
Revenue surging 45.5% year-over-year
Earnings expanding 477.2% YoY
Large-cap with strong market position
Areas to Watch
2.1% revenue growth
5.3% margin — thin
Operating margin of 4.9%
Weak financial health signals
Moderate valuation
Trading at 21.2x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : GAP
The strongest argument for GAP centers on P/E Ratio, Return on Equity, Price/Book. PEG of 1.45 suggests the stock is reasonably priced for its growth.
Bull Case : WDC
The strongest argument for WDC centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 55.3% and operating margin at 37.0%. Revenue growth of 45.5% demonstrates continued momentum.
Bear Case : GAP
The primary concerns for GAP are Revenue Growth, Profit Margin, Operating Margin.
Bear Case : WDC
The primary concerns for WDC are P/E Ratio, Price/Book.
Key Dynamics to Monitor
GAP profiles as a value stock while WDC is a growth play — different risk/reward profiles.
GAP carries more volatility with a beta of 2.25 — expect wider price swings.
WDC is growing revenue faster at 45.5% — sustainability is the question.
WDC generates stronger free cash flow (978M), providing more financial flexibility.
Bottom Line
WDC scores higher overall (79/100 vs 55/100), backed by strong 55.3% margins and 45.5% revenue growth. 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.
Western Digital Corporation
TECHNOLOGY · COMPUTER HARDWARE · USA
Western Digital Corporation (WDC, commonly known as Western Digital or WD) is an American computer hard disk drive manufacturer and data storage company, headquartered in San Jose, California. It designs, manufactures and sells data technology products, including storage devices, data center systems and cloud storage services.
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