Head to Head Comparison: Gap, Inc. (The) (GPS) vs. Its Competitors
Gap, Inc. (The) (NYSE: GPS) is one of 37 public companies in the “Apparel & Accessories Retailers” industry, but how does it contrast to its peers? We will compare Gap, Inc. (The) to similar companies based on the strength of its valuation, earnings, analyst recommendations, risk, profitability, institutional ownership and dividends.
Insider & Institutional Ownership
56.4% of Gap, Inc. (The) shares are held by institutional investors. Comparatively, 75.4% of shares of all “Apparel & Accessories Retailers” companies are held by institutional investors. 27.3% of Gap, Inc. (The) shares are held by insiders. Comparatively, 16.4% of shares of all “Apparel & Accessories Retailers” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This is a summary of recent ratings for Gap, Inc. (The) and its peers, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Gap, Inc. (The)||2||18||6||0||2.15|
|Gap, Inc. (The) Competitors||517||2990||2912||84||2.39|
Gap, Inc. (The) presently has a consensus target price of $26.85, indicating a potential upside of 3.32%. As a group, “Apparel & Accessories Retailers” companies have a potential upside of 6.10%. Given Gap, Inc. (The)’s peers stronger consensus rating and higher possible upside, analysts plainly believe Gap, Inc. (The) has less favorable growth aspects than its peers.
Earnings & Valuation
This table compares Gap, Inc. (The) and its peers top-line revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Gap, Inc. (The)||$15.47 billion||$2.01 billion||12.38|
|Gap, Inc. (The) Competitors||$3.37 billion||$449.09 million||21.26|
Gap, Inc. (The) has higher revenue and earnings than its peers. Gap, Inc. (The) 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.
Volatility & Risk
Gap, Inc. (The) has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500. Comparatively, Gap, Inc. (The)’s peers have a beta of 0.78, meaning that their average stock price is 22% less volatile than the S&P 500.
Gap, Inc. (The) pays an annual dividend of $0.92 per share and has a dividend yield of 3.5%. Gap, Inc. (The) pays out 43.8% of its earnings in the form of a dividend. As a group, “Apparel & Accessories Retailers” companies pay a dividend yield of 3.1% and pay out 54.8% of their earnings in the form of a dividend. Gap, Inc. (The) has increased its dividend for 7 consecutive years. Gap, Inc. (The) is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.
This table compares Gap, Inc. (The) and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Gap, Inc. (The)||5.42%||28.50%||10.64%|
|Gap, Inc. (The) Competitors||2.18%||4.52%||5.17%|
Gap, Inc. (The) beats its peers on 9 of the 15 factors compared.
About Gap, Inc. (The)
The Gap, Inc. (Gap Inc.) is an apparel retail company. The Company offers apparel, accessories and personal care products for men, women and children under the Gap, Banana Republic, Old Navy, Athleta and Intermix brands. Its products are available to customers online through Company-owned Websites and through the use of third-parties that provide logistics and fulfillment services. In addition to operating in the specialty, outlet, online and franchise channels, it also uses the Company’s omni-channel capabilities to bridge the digital world and physical stores. Its omni-channel services, including order-in-store, reserve-in-store, find-in-store and ship-from-store are tailored across its portfolio of brands. It also sells products that are designed and manufactured by branded third-parties, especially at its Intermix brands. It has Company-operated stores in the United States, Canada, the United Kingdom, France, Ireland, Japan, Italy, China, Hong Kong, Taiwan, and Mexico.
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