Contrasting GAP (GAP) and Its Competitors

GAP (NYSE:GAPGet Free Report) is one of 13 publicly-traded companies in the “Family clothing stores” industry, but how does it compare to its competitors? We will compare GAP to similar businesses based on the strength of its profitability, risk, institutional ownership, dividends, analyst recommendations, valuation and earnings.

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 -191.3% of their earnings in the form of a dividend.

Volatility & Risk

GAP has a beta of 2.35, meaning that its share price is 135% more volatile than the S&P 500. Comparatively, GAP’s competitors have a beta of 1.77, meaning that their average share price is 77% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for GAP and its competitors, as provided by MarketBeat.

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, indicating a potential upside of 19.95%. As a group, “Family clothing stores” companies have a potential upside of 7.91%. Given GAP’s higher probable upside, equities research analysts plainly believe GAP is more favorable than its competitors.

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 4.36% -452.40% 7.85%

Insider & Institutional Ownership

58.8% of GAP shares are owned by institutional investors. Comparatively, 75.6% of shares of all “Family clothing stores” companies are owned by institutional investors. 31.0% of GAP shares are owned by insiders. Comparatively, 16.2% of shares of all “Family clothing stores” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

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 $15.17 billion $502.00 million -0.83
GAP Competitors $12.45 billion $774.80 million 12.54

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.

Summary

GAP competitors beat GAP on 8 of the 15 factors compared.

GAP Company Profile

(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.

Receive News & Ratings for GAP Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for GAP and related companies with MarketBeat.com's FREE daily email newsletter.