GAP vs ROST: The Gap and Ross Stores compared
The short version
From the latest prices and each company's SEC filings. Who's ahead on each measure, not which to buy.
- Ross Stores is the larger company, worth $72.2B, about 8.6 times The Gap.
- Ross Stores grew revenue faster over the last year (+13.3% vs -2.0%).
- Ross Stores keeps more of each dollar of revenue as operating profit (13.8% vs 11.0%).
- On earnings, The Gap is the cheaper stock (10.8x vs 33.8x).
- Ross Stores's price assumes faster free cash flow growth: about 11% a year, against -4% for The Gap (reverse DCF).
Side by side
The stronger figure is shaded where higher (or, for valuation multiples, lower) reads as better. How the implied growth works.
| Measure | GAP | ROST |
|---|---|---|
| Market cap | $8.4B | $72.2B |
| Share price | $23.23 | $222.41 |
| Revenue (last fiscal year) | $15.4B | $22.8B |
| Free cash flow (last fiscal year) | $823M | $2.2B |
| Revenue growth, last year | -2.0% | +13.3% |
| Revenue growth per year, last 5 fiscal years | -2.0% | +4.7% |
| Operating margin | 11.0% | 13.8% |
| Net margin | 8.1% | 10.8% |
| Return on equity | 31.6% | 39.4% |
| P/E (trailing) | 10.8x | 33.8x |
| Price / free cash flow | 10.2x | 32.7x |
| EV / EBITDA | 5.17x | 19.0x |
| FCF growth the price implies | -3.9% | 11.4% |
| Dividend yield | 2.8% | 0.73% |
| Debt / equity | 2.25x | 1.37x |
| Fundamental grade | C | C |
| Superinvestors holding it | 2 | 4 |
| Insider purchases, last 12 months | 0 | 2 |
Results from SEC filings
Revenue and free cash flow by fiscal year, from each company's 10-K filings.
The Gap
| Year | Revenue | Free cash flow | Op. margin |
|---|---|---|---|
| 2022 | $16.7B | $115M | 4.9% |
| 2023 | $15.6B | -$78M | -0.44% |
| 2024 | $14.9B | $1.1B | 3.8% |
| 2025 | $15.1B | $1.0B | 7.4% |
| 2026 | $15.4B | $823M | 7.3% |
Ross Stores
| Year | Revenue | Free cash flow | Op. margin |
|---|---|---|---|
| 2022 | $18.9B | $1.2B | 11.9% |
| 2023 | $18.7B | $1.0B | 10.6% |
| 2024 | $20.4B | $1.8B | 11.3% |
| 2025 | $21.1B | $1.6B | 12.2% |
| 2026 | $22.8B | $2.2B | 11.9% |
Compare them in fullFifteen years of statements, quarterly results, DCF and IRR models, and any number of peers side by side.
Open GAP in InvestinglyQuestions
Which is bigger, The Gap or Ross Stores?
Ross Stores (ROST), at $72.2B against $8.4B.
Is GAP or ROST cheaper?
By trailing P/E, The Gap (10.8x) is cheaper than Ross Stores (33.8x). A lower multiple can also mean the market expects less growth.
Which grows faster, GAP or ROST?
Ross Stores: revenue grew +13.3% over the last year, against -2.0%.
Prices and ratios as of the last daily update; statements from SEC filings. Information only, not investment advice.