Critical Contrast: GAP (GAP) vs. Its Competitors

GAP (NYSE:GAPGet Free Report) is one of 15 public companies in the “Family clothing stores” industry, but how does it compare to its competitors? We will compare GAP to related companies based on the strength of its institutional ownership, profitability, dividends, valuation, analyst recommendations, earnings and risk.

Earnings and Valuation

This table compares GAP and its competitors gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
GAP $15.17 billion $502.00 million -0.79
GAP Competitors $10.54 billion $637.10 million 10.73

GAP has higher revenue, but lower earnings than its competitors. GAP is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

73.0% of shares of all “Family clothing stores” companies are held by institutional investors. 12.5% of shares of all “Family clothing stores” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares GAP and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
GAP 5.05% 28.89% 6.92%
GAP Competitors 3.12% -376.16% 6.89%

Dividends

GAP pays an annual dividend of $0.60 per share and has a dividend yield of 2.8%. GAP pays out -2.2% of its earnings in the form of a dividend. As a group, “Family clothing stores” companies pay a dividend yield of 1.7% and pay out -52.7% of their earnings in the form of a dividend.

Risk and Volatility

GAP has a beta of 2.35, indicating that its stock price is 135% more volatile than the S&P 500. Comparatively, GAP’s competitors have a beta of 2.18, indicating that their average stock price is 118% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for GAP and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GAP 0 3 0 0 2.00
GAP Competitors 359 2137 2392 31 2.43

GAP currently has a consensus target price of $27.00, indicating a potential upside of 26.05%. As a group, “Family clothing stores” companies have a potential upside of 9.55%. Given GAP’s higher possible upside, research analysts plainly believe GAP is more favorable than its competitors.

Summary

GAP competitors beat GAP on 8 of the 15 factors compared.

About GAP

(Get Free Report)

The Gap, Inc. operates as an apparel retail company. The company offers apparel, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic, and Athleta brands. Its products include adult apparel and accessories; and fitness and lifestyle products for use in yoga, training, sports, travel, and everyday activities for women and girls. The company offers its products through company-operated stores, franchise stores, websites, and third-party arrangements. It has franchise agreements to operate Old Navy, Gap, Banana Republic, and Athleta stores and websites in Asia, Europe, Latin America, the Middle East, and Africa. The Gap, Inc. was incorporated in 1969 and is headquartered in San Francisco, California.

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