Analyzing Gap, Inc. (The) (GPS) & Its Competitors

Gap, Inc. (The) (NYSE: GPS) is one of 38 publicly-traded companies in the “Apparel & Accessories Retailers” industry, but how does it compare to its competitors? We will compare Gap, Inc. (The) to similar companies based on the strength of its risk, earnings, institutional ownership, valuation, dividends, analyst recommendations and profitability.

Analyst Ratings

This is a breakdown of recent recommendations for Gap, Inc. (The) and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gap, Inc. (The) 2 17 6 0 2.16
Gap, Inc. (The) Competitors 518 3025 2927 85 2.39

Gap, Inc. (The) currently has a consensus price target of $26.93, indicating a potential downside of 1.08%. As a group, “Apparel & Accessories Retailers” companies have a potential upside of 8.20%. Given Gap, Inc. (The)’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Gap, Inc. (The) has less favorable growth aspects than its competitors.

Earnings & Valuation

This table compares Gap, Inc. (The) and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Gap, Inc. (The) $15.52 billion $676.00 million 12.97
Gap, Inc. (The) Competitors $3.99 billion $181.38 million 814.27

Gap, Inc. (The) has higher revenue and earnings than its competitors. Gap, Inc. (The) 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.

Profitability

This table compares Gap, Inc. (The) and its competitors’ 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 1.78% 4.60% 5.25%

Insider & Institutional Ownership

56.5% of Gap, Inc. (The) shares are owned by institutional investors. Comparatively, 75.5% of shares of all “Apparel & Accessories Retailers” companies are owned by institutional investors. 27.3% of Gap, Inc. (The) shares are owned by insiders. Comparatively, 16.4% of shares of all “Apparel & Accessories Retailers” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

Gap, Inc. (The) pays an annual dividend of $0.92 per share and has a dividend yield of 3.4%. 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 2.9% and pay out 54.8% of their earnings in the form of a dividend. Gap, Inc. (The) has raised its dividend for 7 consecutive years. Gap, Inc. (The) is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Risk & Volatility

Gap, Inc. (The) has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500. Comparatively, Gap, Inc. (The)’s competitors have a beta of 0.87, meaning that their average share price is 13% less volatile than the S&P 500.

Summary

Gap, Inc. (The) beats its competitors on 8 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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