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GAP vs IBP

GAP
The Gap, Inc.
NEUTRAL
Price
$24.99
Market Cap
$9.13B
Sector
Consumer Cyclical
AI Confidence
85%
IBP
Installed Building Products, Inc.
NEUTRAL
Price
$298.53
Market Cap
$8.04B
Sector
Consumer Cyclical
AI Confidence
85%

Valuation

P/E Ratio
GAP
11.73
IBP
30.78
Forward P/E
GAP
9.57
IBP
24.72
P/B Ratio
GAP
2.45
IBP
11.27
P/S Ratio
GAP
0.59
IBP
2.71
EV/EBITDA
GAP
7.45
IBP
17.49

Profitability

Gross Margin
GAP
40.79%
IBP
33.97%
Operating Margin
GAP
4.89%
IBP
14.62%
Profit Margin
GAP
5.31%
IBP
8.93%
ROE
GAP
23.1%
IBP
37.51%
ROA
GAP
5.62%
IBP
11.77%

Growth

Revenue Growth
GAP
2.1%
IBP
-0.4%
Earnings Growth
GAP
-16.0%
IBP
18.2%

Financial Health

Debt/Equity
GAP
1.48
IBP
1.4
Current Ratio
GAP
1.75
IBP
3.03
Quick Ratio
GAP
1.0
IBP
2.31

Dividends

Dividend Yield
GAP
2.8%
IBP
1.11%
Payout Ratio
GAP
30.99%
IBP
32.75%

AI Verdict

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
IBP NEUTRAL

IBP presents a dichotomy of elite operational efficiency and concerning valuation/insider signals. While the Piotroski F-Score of 4/9 indicates stable health and the company boasts a superior ROE of 37.51% compared to its sector, the stock trades at a massive premium to its Graham Number ($76.02). Earnings growth remains strong (18.20% YoY) despite stagnant revenue growth (-0.40%), suggesting internal cost optimizations rather than market expansion. The primary headwind is a starkly bearish insider sentiment, highlighted by the CEO selling 400,000 shares.

Strengths
Exceptional ROE (37.51%) and ROA (11.77%) far exceeding sector averages
Strong liquidity position with a Current Ratio of 3.03 and Quick Ratio of 2.31
Consistent earnings track record with 3 of the last 4 quarters beating estimates
Risks
Stagnant to negative revenue growth (-0.40% YoY) indicating a potential growth ceiling
Extreme valuation premium relative to book value (P/B of 11.27)
Heavy insider selling, specifically a large liquidation by the CEO

Compare Another Pair

GAP vs IBP: Head-to-Head Comparison

This page compares The Gap, Inc. (GAP) and Installed Building Products, Inc. (IBP) 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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