The Gap, Inc. (GAP) vs Victoria's Secret & Co. (VSXY)

The Gap, Inc. and Victoria's Secret & Co. are both Apparel Retail companies. The Gap, Inc. is the larger, with a market value of $8.2B against $7.2B — 1.1× the size. The Gap, Inc. trades at the lower P/E: 6.8× against 19.1×. Victoria's Secret & Co. grew revenue faster over the last twelve months: 10.3% against 1.05%. The Gap, Inc. has the higher net margin (8.14% vs 5.47%) and the higher return on invested capital (35.6% vs 22.6%). Across the 21 metrics below, The Gap, Inc. leads on 17 and Victoria's Secret & Co. on 4.

Valuation

Metric GAP VSXY Apparel Retail median
P/E 6.76 19.14 13.40
P/S 0.54 1.01 0.31
P/B 2.08 6.65 1.73
Price to free cash flow 8.58 12.61 12.11
EV/EBITDA 3.57 9.78 7.58
EV/Sales 0.51 1.08 0.51
Earnings yield 14.79% 5.23% 5.50%
Free cash flow yield 11.66% 7.93% 3.85%

Profitability

Metric GAP VSXY Apparel Retail median
Gross margin 43.26% 39.57% 41.90%
Operating margin 10.99% 7.86% 2.50%
Net margin 8.14% 5.47% 3.41%
Free cash flow margin 6.24% 8.02% 2.86%
Return on equity 33.78% 42.93% 7.71%
Return on assets 9.98% 7.63% 2.85%
Return on invested capital 35.57% 22.56% 6.41%

Growth

Metric GAP VSXY Apparel Retail median
Revenue growth (TTM) 1.05% 10.31% 4.17%
EPS growth (last fiscal year) (3.18%) (5.85%) 5.51%
Revenue growth, 5-year CAGR 2.17% 3.90% 5.92%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric GAP VSXY Apparel Retail median
Debt to equity 0.38 0.93 0.01
Current ratio 1.82 1.36 1.53
Net debt to EBITDA (0.94) 0.90 (0.38)

Dividend

Metric GAP VSXY Apparel Retail median
Dividend yield 2.98% — 1.80%
Payout ratio 0.21 — 0.21

Size

Metric GAP VSXY Apparel Retail median
Market cap 8.24b 7.22b 371.52m

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