GAP (GAP) Competitors

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

Which has more volatility and risk, GAP or CDW?

GAP has a beta of 2.2, meaning that its share price is 120% more volatile than the S&P 500. Comparatively, CDW has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500.

Is GAP or CDW a better dividend stock?

GAP pays an annual dividend of $0.66 per share and has a dividend yield of 3.0%. 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 raised its dividend for 1 consecutive years and CDW has raised 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 held by institutional investors. Comparatively, 93.2% of CDW shares are held by institutional investors. 30.6% of GAP shares are held by company insiders. Comparatively, 0.9% of CDW shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Is GAP or CDW more profitable?

GAP has a net margin of 5.40% compared to CDW's net margin of 5.13%. CDW's return on equity of 55.42% beat GAP's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
GAP	5.40%	29.03%	7.26%
CDW	5.13%	55.42%	8.94%

Do analysts prefer GAP or CDW?

GAP presently has a consensus target price of $28.47, suggesting a potential upside of 27.27%. CDW has a consensus target price of $208.71, suggesting a potential upside of 18.76%. Given GAP's stronger consensus rating and higher probable upside, research analysts clearly 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)	3 Buy rating(s)	0 Strong Buy rating(s)	2.43

Which has higher earnings and 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	$15.16B	0.56	$502M	$2.31	9.68
CDW	$21.33B	1.09	$1.08B	$8.07	21.78

Does the MarketBeat Community prefer GAP or CDW?

CDW received 556 more outperform votes than GAP when rated by MarketBeat users. Likewise, 69.78% of users gave CDW an outperform vote while only 47.50% of users gave GAP an outperform vote.

Company	Underperform	Outperform
GAP	Outperform Votes 19 47.50%	Underperform Votes 21 52.50%
CDW	Outperform Votes 575 69.78%	Underperform Votes 249 30.22%

Does the media refer more to GAP or CDW?

In the previous week, GAP had 13 more articles in the media than CDW. MarketBeat recorded 24 mentions for GAP and 11 mentions for CDW. CDW's average media sentiment score of 1.01 beat GAP's score of 0.20 indicating that CDW is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
GAP	5 Very Positive mention(s)	4 Positive mention(s)	9 Neutral mention(s)	5 Negative mention(s)	1 Very Negative mention(s)	Neutral
CDW	7 Very Positive mention(s)	2 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Summary

CDW beats GAP on 12 of the 21 factors compared between the two stocks.