Head to Head Contrast: GAP (GAP) & Its Competitors

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

Valuation & Earnings

This table compares GAP and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
GAP	$15.17 billion	$502.00 million	-0.78
GAP Competitors	$10.52 billion	$637.10 million	10.59

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

Insider and Institutional Ownership

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

Profitability

This table compares GAP and its peers’ 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 1.8% and pay out -55.1% of their earnings in the form of a dividend.

Volatility & Risk

GAP has a beta of 2.35, suggesting that its share price is 135% more volatile than the S&P 500. Comparatively, GAP’s peers have a beta of 1.81, suggesting that their average share price is 81% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and target prices for GAP and its peers, 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	2140	2393	31	2.43

GAP currently has a consensus price target of $27.00, suggesting a potential upside of 27.06%. As a group, “Family clothing stores” companies have a potential upside of 11.68%. Given GAP’s higher possible upside, analysts plainly believe GAP is more favorable than its peers.

Summary

GAP peers 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.