Analyzing GAP (NYSE:GAP) and Stein Mart (OTCMKTS:SMRTQ)

Stein Mart (OTCMKTS:SMRTQGet Free Report) and GAP (NYSE:GAPGet Free Report) are both retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, profitability, dividends and analyst recommendations.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Stein Mart and GAP, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stein Mart 0 0 0 0 0.00
GAP 1 5 5 0 2.36

GAP has a consensus target price of $28.30, indicating a potential upside of 13.79%. Given GAP’s stronger consensus rating and higher probable upside, analysts clearly believe GAP is more favorable than Stein Mart.

Profitability

This table compares Stein Mart and GAP’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Stein Mart N/A N/A N/A
GAP 5.40% 30.10% 7.38%

Institutional & Insider Ownership

58.8% of GAP shares are held by institutional investors. 39.4% of Stein Mart shares are held by insiders. Comparatively, 31.0% of GAP shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Stein Mart and GAP”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Stein Mart N/A N/A N/A N/A N/A
GAP $14.89 billion 0.63 $502.00 million $2.16 11.51

GAP has higher revenue and earnings than Stein Mart.

Summary

GAP beats Stein Mart on 8 of the 9 factors compared between the two stocks.

About Stein Mart

(Get Free Report)

Stein Mart, Inc., a specialty omnichannel off-price retailer, offers designer and name-brand fashion apparels, home décor merchandise, accessories, and shoes at everyday discount prices in the United States. The company's stores also provides endless aisle, a mobile technology to locate products; a SMart Rewards loyalty program; co-branded and private label credit card programs; and electronic gift cards. As of June 3, 2020, it operated 281 stores in 30 states. The company also sells its products through an online retail selling site. Stein Mart, Inc. was founded in 1908 and is headquartered in Jacksonville, Florida. On August 12, 2020, Stein Mart, Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Middle District of Florida.

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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