GAP vs PAC: Which Is the Better Buy in 2026?

Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.

Reading it: GAP is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.

The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. GAP and PAC share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.

This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined GAP and PAC exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.

Gap Inc. sells clothing under four owned brands and reports each of them separately. Old Navy is the volume engine at roughly $2.0 billion of the $3.5 billion first quarter of fiscal 2026, with the Gap brand at ~$796 million, Banana Republic at ~$431 million and Athleta at ~$270 million. The company ended that quarter with nearly 3,500 store locations across about 35 countries, of which 2,477 were company-operated, and it employs about 79,000 people. Online is ~38% of net sales. Richard Dickson has run the company since 2023, and the turnaround he inherited has been mostly about product, marketing and inventory discipline rather than store expansion.

Full GAP guide

Grupo Aeroportuario del Pacifico (GAP) operates 12 airports across central and northwestern Mexico plus two in Jamaica, including major hubs like Guadalajara and Tijuana and tourist gateways such as Los Cabos and Puerto Vallarta. Its revenue comes from regulated aeronautical charges (per-passenger tariffs set in five-year cycles), non-aeronautical commercial income (retail, parking, advertising), and construction revenue tied to mandated capital investment. Margins are structurally high because an airport is a local monopoly with mostly fixed costs, which is why EBITDA margins sit near 68 percent.

Full PAC guide

Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.

• GAP drivers: The Gap brand is genuinely working; Tariff costs and the merchandise margin path.
• PAC drivers: Regulated tariff resets; Commercial revenue per passenger.

A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: Guidance for fiscal 2026 was cut to net sales growth of 1% to 2% from 2% to 3%, and management signalled second-quarter sales roughly flat to down 1%, so the top line offers very little cushion. For PAC, passenger traffic is cyclical and exposed to shocks: Q1 2026 total traffic fell about 5.5 percent on Hurricane Melissa in Jamaica and security events in Jalisco.

Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick GAP if you believe its drivers more; PAC if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the GAP and PAC guides.

GAP. Trailing figures cover the four quarters through May 2, 2026 and include the ~$313 million net interchange-litigation gain booked in the first quarter of fiscal 2026, which is why reported EPS of ~$2.52 runs well ahead of the ~$2.30 to ~$2.40 adjusted range guided for the full year. Reported full-year EPS guidance of ~$2.83 to ~$2.93 also carries that gain. On the adjusted number the multiple is closer to ~8.5x, and adjusted operating margin is guided to ~7.3% to ~7.5%, essentially flat with fiscal 2025's 7.3%. Second quarter results are scheduled for August 27, 2026.

PAC. PAC trades like a regulated infrastructure operator: a low-20s trailing P/E and an EV/EBITDA near 12, richer than a pure cyclical because of monopoly economics and a high dividend. Q1 2026 showed revenue up about 2.8 percent and EBITDA up 6.4 percent even as passenger traffic fell 5.5 percent, illustrating how tariff resets and cost control can carry earnings through a soft traffic quarter.

Headline figures (approximate, August 2026): GAP shows revenue (ttm) ~$15.4B, net income (ttm) ~$962M, diluted eps (ttm, reported) ~$2.52, market cap ~$7.1B at ~$19.65 per share; PAC shows revenue (ttm) ~$2.4B (Ps. ~45B), q1 2026 revenue ~Ps. 11.4B (+2.8% YoY), q1 2026 ebitda margin ~68%, market cap ~$12-14B.

GAP and PAC are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined GAP and PAC exposure against your real portfolio. It is not an investment adviser.