GAP (NYSE:GAP – Get Free Report) is one of 14 publicly-traded companies in the “Family clothing stores” industry, but how does it contrast to its rivals? We will compare GAP to similar companies based on the strength of its profitability, dividends, institutional ownership, valuation, earnings, analyst recommendations and risk.
Institutional and Insider Ownership
58.8% of GAP shares are held by institutional investors. Comparatively, 75.3% of shares of all “Family clothing stores” companies are held by institutional investors. 31.0% of GAP shares are held by company insiders. Comparatively, 15.8% of shares of all “Family clothing stores” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Earnings & Valuation
This table compares GAP and its rivals gross revenue, earnings per share and valuation.
Gross Revenue | Net Income | Price/Earnings Ratio | |
GAP | $15.17 billion | $502.00 million | -0.80 |
GAP Competitors | $11.55 billion | $706.90 million | 12.13 |
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 1.7% and pay out -55.1% of their earnings in the form of a dividend.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for GAP and its rivals, 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 | 348 | 2121 | 2378 | 31 | 2.43 |
GAP currently has a consensus target price of $27.00, suggesting a potential upside of 24.77%. As a group, “Family clothing stores” companies have a potential upside of 8.14%. Given GAP’s higher possible upside, analysts clearly believe GAP is more favorable than its rivals.
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% |
Risk & Volatility
GAP has a beta of 2.35, indicating that its share price is 135% more volatile than the S&P 500. Comparatively, GAP’s rivals have a beta of 2.12, indicating that their average share price is 112% 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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