ANF vs. GPS, URBN, AEO, FL, BKE, CAL, GES, SCVL, ZUMZ, and DBI
Should you be buying Abercrombie & Fitch stock or one of its competitors? The main competitors of Abercrombie & Fitch include GAP (GPS), Urban Outfitters (URBN), American Eagle Outfitters (AEO), Foot Locker (FL), Buckle (BKE), Caleres (CAL), Guess? (GES), Shoe Carnival (SCVL), Zumiez (ZUMZ), and Designer Brands (DBI). These companies are all part of the "apparel retail" industry.
Abercrombie & Fitch (NYSE:ANF) and GAP (NYSE:GPS) are both mid-cap retail/wholesale companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, media sentiment, earnings, analyst recommendations, dividends, institutional ownership, valuation, risk and community ranking.
Abercrombie & Fitch pays an annual dividend of $0.80 per share and has a dividend yield of 0.5%. GAP pays an annual dividend of $0.60 per share and has a dividend yield of 2.8%. Abercrombie & Fitch pays out 10.0% of its earnings in the form of a dividend. GAP pays out 33.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Abercrombie & Fitch currently has a consensus target price of $178.00, suggesting a potential upside of 16.65%. GAP has a consensus target price of $26.11, suggesting a potential upside of 21.79%. Given GAP's stronger consensus rating and higher probable upside, analysts plainly believe GAP is more favorable than Abercrombie & Fitch.
Abercrombie & Fitch received 19 more outperform votes than GAP when rated by MarketBeat users. Likewise, 59.64% of users gave Abercrombie & Fitch an outperform vote while only 51.94% of users gave GAP an outperform vote.
Abercrombie & Fitch has a beta of 1.54, indicating that its share price is 54% more volatile than the S&P 500. Comparatively, GAP has a beta of 2.38, indicating that its share price is 138% more volatile than the S&P 500.
In the previous week, Abercrombie & Fitch had 21 more articles in the media than GAP. MarketBeat recorded 27 mentions for Abercrombie & Fitch and 6 mentions for GAP. Abercrombie & Fitch's average media sentiment score of 0.50 beat GAP's score of -0.09 indicating that Abercrombie & Fitch is being referred to more favorably in the media.
Abercrombie & Fitch has a net margin of 9.53% compared to GAP's net margin of 4.52%. Abercrombie & Fitch's return on equity of 44.83% beat GAP's return on equity.
58.8% of GAP shares are owned by institutional investors. 3.8% of Abercrombie & Fitch shares are owned by insiders. Comparatively, 30.8% of GAP shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
GAP has higher revenue and earnings than Abercrombie & Fitch. GAP is trading at a lower price-to-earnings ratio than Abercrombie & Fitch, indicating that it is currently the more affordable of the two stocks.
Summary
Abercrombie & Fitch beats GAP on 11 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding ANF and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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