GAP (GAP) Competitors

GAP (NYSE:GAP) and CDW (NASDAQ:CDW) are both retail companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, dividends, risk, institutional ownership, analyst recommendations, media sentiment, earnings and profitability.

Do analysts prefer GAP or CDW?

GAP currently has a consensus price target of $28.53, suggesting a potential upside of 37.67%. CDW has a consensus price target of $208.50, suggesting a potential upside of 15.08%. Given GAP's stronger consensus rating and higher possible upside, equities analysts plainly believe GAP is more favorable than CDW.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GAP	0 Sell rating(s)	7 Hold rating(s)	8 Buy rating(s)	0 Strong Buy rating(s)	2.53
CDW	0 Sell rating(s)	4 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	2.33

Does the media prefer GAP or CDW?

In the previous week, GAP had 7 more articles in the media than CDW. MarketBeat recorded 28 mentions for GAP and 21 mentions for CDW. CDW's average media sentiment score of 1.07 beat GAP's score of 0.10 indicating that CDW is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
GAP	3 Very Positive mention(s)	3 Positive mention(s)	15 Neutral mention(s)	5 Negative mention(s)	1 Very Negative mention(s)	Neutral
CDW	11 Very Positive mention(s)	4 Positive mention(s)	5 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Is GAP or CDW a better dividend stock?

GAP pays an annual dividend of $0.66 per share and has a dividend yield of 3.2%. CDW pays an annual dividend of $2.50 per share and has a dividend yield of 1.4%. GAP pays out 28.6% of its earnings in the form of a dividend. CDW pays out 31.0% 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. GAP has increased its dividend for 1 consecutive years and CDW has increased its dividend for 10 consecutive years. GAP is clearly the better dividend stock, given its higher yield and lower payout ratio.

Do institutionals and insiders believe in GAP or CDW?

58.8% of GAP shares are owned by institutional investors. Comparatively, 93.2% of CDW shares are owned by institutional investors. 31.0% of GAP shares are owned by company insiders. Comparatively, 0.9% of CDW shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Which has more risk and volatility, GAP or CDW?

GAP has a beta of 2.14, meaning that its share price is 114% more volatile than the S&P 500. Comparatively, CDW has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500.

Is GAP or CDW more profitable?

GAP has a net margin of 5.80% compared to CDW's net margin of 5.10%. CDW's return on equity of 54.90% beat GAP's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
GAP	5.80%	27.86%	7.51%
CDW	5.10%	54.90%	8.75%

Which has better earnings & valuation, GAP or CDW?

CDW has higher revenue and earnings than GAP. GAP is trading at a lower price-to-earnings ratio than CDW, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GAP	$15.09B	0.52	$844M	$2.31	8.97
CDW	$21.00B	1.14	$1.08B	$8.07	22.45

Summary

CDW beats GAP on 10 of the 19 factors compared between the two stocks.