GAP (NYSE:GAP – Get Free Report) is one of 14 public companies in the “Family clothing stores” industry, but how does it weigh in compared to its rivals? We will compare GAP to related companies based on the strength of its earnings, risk, valuation, analyst recommendations, institutional ownership, profitability and dividends.
Earnings & Valuation
This table compares GAP and its rivals revenue, earnings per share and valuation.
Gross Revenue | Net Income | Price/Earnings Ratio | |
GAP | $15.17 billion | $502.00 million | -0.80 |
GAP Competitors | $11.36 billion | $706.90 million | 11.72 |
GAP has higher revenue, but lower earnings than its rivals. GAP is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
Analyst Recommendations
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
GAP | 0 | 3 | 0 | 0 | 2.00 |
GAP Competitors | 348 | 2121 | 2378 | 31 | 2.43 |
GAP currently has a consensus target price of $27.00, suggesting a potential upside of 23.91%. As a group, “Family clothing stores” companies have a potential upside of 10.37%. Given GAP’s higher probable upside, analysts plainly believe GAP is more favorable than its rivals.
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 1.8% and pay out -56.4% of their earnings in the form of a dividend.
Insider and Institutional Ownership
58.8% of GAP shares are owned by institutional investors. Comparatively, 75.3% of shares of all “Family clothing stores” companies are owned by institutional investors. 31.0% of GAP shares are owned by insiders. Comparatively, 15.8% of shares of all “Family clothing stores” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares GAP and its rivals’ 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 | 4.24% | -410.26% | 7.55% |
Volatility & Risk
GAP has a beta of 2.35, indicating that its stock price is 135% more volatile than the S&P 500. Comparatively, GAP’s rivals have a beta of 1.72, indicating that their average stock price is 72% more volatile than the S&P 500.
Summary
GAP rivals beat GAP on 8 of the 15 factors compared.
GAP Company Profile
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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