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AMZN vs GAP

AMZN
Amazon.com, Inc.
BULLISH
Price
$221.25
Market Cap
$2.38T
Sector
Consumer Cyclical
AI Confidence
82%
GAP
The Gap, Inc.
NEUTRAL
Price
$24.99
Market Cap
$9.13B
Sector
Consumer Cyclical
AI Confidence
85%

Valuation

P/E Ratio
AMZN
29.86
GAP
11.73
Forward P/E
AMZN
23.55
GAP
9.57
P/B Ratio
AMZN
5.78
GAP
2.45
P/S Ratio
AMZN
3.31
GAP
0.59
EV/EBITDA
AMZN
16.68
GAP
7.45

Profitability

Gross Margin
AMZN
50.29%
GAP
40.79%
Operating Margin
AMZN
10.53%
GAP
4.89%
Profit Margin
AMZN
10.83%
GAP
5.31%
ROE
AMZN
22.29%
GAP
23.1%
ROA
AMZN
6.93%
GAP
5.62%

Growth

Revenue Growth
AMZN
13.6%
GAP
2.1%
Earnings Growth
AMZN
5.0%
GAP
-16.0%

Financial Health

Debt/Equity
AMZN
0.43
GAP
1.48
Current Ratio
AMZN
1.05
GAP
1.75
Quick Ratio
AMZN
0.84
GAP
1.0

Dividends

Dividend Yield
AMZN
--
GAP
2.8%
Payout Ratio
AMZN
0.0%
GAP
30.99%

AI Verdict

AMZN BULLISH

Amazon exhibits a stable financial foundation with a Piotroski F-Score of 6/9 and a healthy Debt/Equity ratio of 0.43. While the current price of $221.25 represents a significant premium over the Graham Number ($79.92) and Intrinsic Value ($107.45), this is typical for a high-growth dominant player in the internet retail and cloud space. Strong revenue growth (13.6%) and a superior ROE (22.29%) compared to the sector average (4.42%) justify the valuation premium. Despite bearish insider selling, the strong analyst consensus and consistent earnings beat history support a positive long-term outlook.

Strengths
Strong revenue growth of 13.6% YoY, outperforming sector average
Exceptional ROE of 22.29% compared to sector average of 4.42%
Conservative leverage with a Debt/Equity ratio of 0.43
Risks
Significant valuation gap between current price and deterministic intrinsic value
Bearish insider sentiment with consistent selling by the CEO and officers
Tight liquidity indicated by a Current Ratio of 1.05 and Quick Ratio of 0.84
GAP NEUTRAL

GAP exhibits a strong deterministic health profile with a Piotroski F-Score of 7/9, indicating solid operational improvement despite a lack of Altman Z-Score data. However, the stock is currently trading at a premium to both its Graham Number ($22.13) and Intrinsic Value ($14.91), suggesting limited valuation upside. While the balance sheet is stable and the P/E ratio is low relative to the sector, significant headwinds include negative earnings growth (-16% YoY) and a starkly bearish insider sentiment. The disconnect between analyst 'Buy' ratings and the 0/100 technical trend suggests a high-risk environment for new entries.

Strengths
Strong Piotroski F-Score (7/9) indicating improving financial health
Low P/E ratio (11.73) compared to the Consumer Cyclical sector average (34.14)
Healthy Return on Equity (ROE) of 23.10%
Risks
Negative earnings growth (-16% YoY) and declining Q/Q EPS
Heavy insider selling with $14.19M in net outflows and zero buys
Stagnant revenue growth (2.10%) failing to keep pace with inflation

Compare Another Pair

AMZN vs GAP: Head-to-Head Comparison

This page compares Amazon.com, Inc. (AMZN) and The Gap, Inc. (GAP) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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