The Gap, Inc. (GAP)vsEssential Utilities Inc (WTRG)
GAP
The Gap, Inc.
$24.56
+3.89%
CONSUMER CYCLICAL · Cap: $9.02B
WTRG
Essential Utilities Inc
$37.54
+0.13%
UTILITIES · Cap: $10.77B
Smart Verdict
WallStSmart Research — data-driven comparison
The Gap, Inc. generates 521% more annual revenue ($15.37B vs $2.47B). WTRG leads profitability with a 24.9% profit margin vs 5.3%. GAP appears more attractively valued with a PEG of 1.45. WTRG earns a higher WallStSmart Score of 60/100 (C+).
GAP
Buy55
out of 100
Grade: C
WTRG
Buy60
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+9.1%
Fair Value
$30.21
Current Price
$24.56
$5.65 discount
Margin of Safety
+47.4%
Fair Value
$71.13
Current Price
$37.54
$33.59 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
Strong operational efficiency at 32.4%
Keeps 25 of every $100 in revenue as profit
Attractively priced relative to earnings
Reasonable price relative to book value
15.7% revenue growth
Areas to Watch
2.1% revenue growth
5.3% margin — thin
Operating margin of 4.9%
Weak financial health signals
Weak financial health signals
Expensive relative to growth rate
Earnings declined 30.0%
Negative free cash flow — burning cash
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 : WTRG
The strongest argument for WTRG centers on Operating Margin, Profit Margin, P/E Ratio. Profitability is solid with margins at 24.9% and operating margin at 32.4%. Revenue growth of 15.7% demonstrates continued momentum.
Bear Case : GAP
The primary concerns for GAP are Revenue Growth, Profit Margin, Operating Margin.
Bear Case : WTRG
The primary concerns for WTRG are Piotroski F-Score, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
GAP profiles as a value stock while WTRG is a growth play — different risk/reward profiles.
GAP carries more volatility with a beta of 2.25 — expect wider price swings.
WTRG is growing revenue faster at 15.7% — sustainability is the question.
GAP generates stronger free cash flow (696M), providing more financial flexibility.
Bottom Line
WTRG scores higher overall (60/100 vs 55/100), backed by strong 24.9% margins and 15.7% 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 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.
Essential Utilities Inc
UTILITIES · UTILITIES - REGULATED WATER · USA
Essential Utilities, Inc. operates regulated utilities that provide water, wastewater, or natural gas services in the United States. The company is headquartered in Bryn Mawr, Pennsylvania.
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