GAP (NYSE:GAP – Get Free Report) is one of 13 publicly-traded 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 profitability, analyst recommendations, institutional ownership, valuation, risk, dividends and earnings.
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 | 4.36% | -452.40% | 7.85% |
Dividends
GAP pays an annual dividend of $0.60 per share and has a dividend yield of 2.7%. 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 1.3% and pay out -178.5% of their earnings in the form of a dividend.
Analyst Ratings
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
GAP | 0 | 3 | 0 | 0 | 2.00 |
GAP Competitors | 346 | 2105 | 2336 | 30 | 2.43 |
GAP currently has a consensus target price of $27.00, suggesting a potential upside of 20.00%. As a group, “Family clothing stores” companies have a potential upside of 7.91%. Given GAP’s higher probable upside, equities analysts clearly believe GAP is more favorable than its rivals.
Institutional & Insider Ownership
58.8% of GAP shares are held by institutional investors. Comparatively, 75.6% of shares of all “Family clothing stores” companies are held by institutional investors. 31.0% of GAP shares are held by insiders. Comparatively, 16.2% of shares of all “Family clothing stores” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares GAP and its rivals gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Net Income | Price/Earnings Ratio | |
GAP | $15.17 billion | $502.00 million | -0.83 |
GAP Competitors | $12.51 billion | $774.80 million | 12.60 |
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.
Volatility and Risk
GAP has a beta of 2.35, suggesting that its stock price is 135% more volatile than the S&P 500. Comparatively, GAP’s rivals have a beta of 1.77, suggesting that their average stock price is 77% more volatile than the S&P 500.
Summary
GAP rivals beat GAP on 8 of the 15 factors compared.
About GAP
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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