The Gap, Inc. (GAP)vsWest Pharmaceutical Services Inc (WST)
GAP
The Gap, Inc.
$24.93
-2.20%
CONSUMER CYCLICAL · Cap: $9.50B
WST
West Pharmaceutical Services Inc
$247.02
+0.71%
HEALTHCARE · Cap: $17.68B
Smart Verdict
WallStSmart Research — data-driven comparison
The Gap, Inc. generates 400% more annual revenue ($15.37B vs $3.07B). WST leads profitability with a 16.1% profit margin vs 5.3%. GAP appears more attractively valued with a PEG of 1.39. WST earns a higher WallStSmart Score of 55/100 (C-).
GAP
Buy55
out of 100
Grade: C
WST
Buy55
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
-256.8%
Fair Value
$68.99
Current Price
$247.02
$178.03 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
Safe zone — low bankruptcy risk
Strong operational efficiency at 21.6%
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
2.1% earnings growth
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 : WST
The strongest argument for WST centers on Altman Z-Score, Operating Margin. Profitability is solid with margins at 16.1% and operating margin at 21.6%.
Bear Case : GAP
The primary concerns for GAP are Revenue Growth, Profit Margin, Operating Margin.
Bear Case : WST
The primary concerns for WST are P/E Ratio, EPS Growth, PEG Ratio.
Key Dynamics to Monitor
GAP profiles as a value stock while WST is a mature play — different risk/reward profiles.
GAP carries more volatility with a beta of 2.24 — expect wider price swings.
WST is growing revenue faster at 7.5% — sustainability is the question.
GAP generates stronger free cash flow (696M), providing more financial flexibility.
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 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.
West Pharmaceutical Services Inc
HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA
West Pharmaceutical Services, Inc. is a designer and manufacturer of injectable pharmaceutical packaging and delivery systems. The company is headquartered in Exton, Pennsylvania.
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