Financial Comparison: Gap, Inc. (The) (GPS) and Its Rivals
Gap, Inc. (The) (NYSE: GPS) is one of 38 publicly-traded companies in the “Apparel & Accessories Retailers” industry, but how does it weigh in compared to its rivals? We will compare Gap, Inc. (The) to similar companies based on the strength of its institutional ownership, earnings, analyst recommendations, valuation, risk, dividends and profitability.
Insider and Institutional Ownership
56.4% of Gap, Inc. (The) shares are owned by institutional investors. Comparatively, 75.4% of shares of all “Apparel & Accessories Retailers” companies are owned by institutional investors. 27.3% of Gap, Inc. (The) shares are owned by company insiders. Comparatively, 16.4% of shares of all “Apparel & Accessories Retailers” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
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 3.0% 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 rivals, given its higher yield and lower payout ratio.
This table compares Gap, Inc. (The) and its rivals’ 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||2.22%||4.28%||5.03%|
This is a summary of recent ratings and target prices for Gap, Inc. (The) and its rivals, as provided by MarketBeat.
|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||2994||2917||84||2.39|
Gap, Inc. (The) currently has a consensus price target of $26.85, indicating a potential upside of 1.80%. As a group, “Apparel & Accessories Retailers” companies have a potential upside of 7.28%. Given Gap, Inc. (The)’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Gap, Inc. (The) has less favorable growth aspects than its rivals.
Volatility and Risk
Gap, Inc. (The) has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500. Comparatively, Gap, Inc. (The)’s rivals have a beta of 0.83, suggesting that their average share price is 17% less volatile than the S&P 500.
Earnings & Valuation
This table compares Gap, Inc. (The) and its rivals top-line revenue, earnings per share and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|Gap, Inc. (The)||$15.52 billion||$676.00 million||12.56|
|Gap, Inc. (The) Competitors||$3.99 billion||$181.38 million||19.40|
Gap, Inc. (The) has higher revenue and earnings than its rivals. Gap, Inc. (The) is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
Gap, Inc. (The) beats its rivals on 9 of the 15 factors compared.
Gap, Inc. (The) Company Profile
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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