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 competitors? We will compare GAP to related businesses based on the strength of its earnings, profitability, risk, valuation, institutional ownership, dividends and analyst recommendations.
Insider & Institutional Ownership
58.8% of GAP shares are owned by institutional investors. Comparatively, 71.3% of shares of all “Family clothing stores” companies are owned by institutional investors. 31.0% of GAP shares are owned by insiders. Comparatively, 14.5% of shares of all “Family clothing stores” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a summary of current ratings and price targets for GAP and its competitors, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
GAP | 0 | 3 | 0 | 0 | 2.00 |
GAP Competitors | 357 | 2125 | 2351 | 30 | 2.42 |
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% | -411.36% | 7.11% |
Risk & Volatility
GAP has a beta of 2.35, meaning that its stock price is 135% more volatile than the S&P 500. Comparatively, GAP’s competitors have a beta of 2.24, meaning that their average stock price is 124% more volatile than the S&P 500.
Valuation & Earnings
This table compares GAP and its competitors gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Net Income | Price/Earnings Ratio | |
GAP | $14.89 billion | $502.00 million | 10.70 |
GAP Competitors | $11.62 billion | $692.49 million | 11.60 |
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.
Dividends
GAP pays an annual dividend of $0.60 per share and has a dividend yield of 2.8%. GAP pays out 29.7% 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 78.7% of their earnings in the form of a dividend. GAP is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.
Summary
GAP beats its competitors 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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