GAP (GAP) Competitors

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

Which has more volatility & risk, GAP or CDW?

GAP has a beta of 2.15, suggesting that its share price is 115% more volatile than the S&P 500. Comparatively, CDW has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500.

Does the media refer more to GAP or CDW?

In the previous week, CDW had 1 more articles in the media than GAP. MarketBeat recorded 37 mentions for CDW and 36 mentions for GAP. CDW's average media sentiment score of 1.11 beat GAP's score of 0.14 indicating that CDW is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
GAP	4 Very Positive mention(s)	4 Positive mention(s)	24 Neutral mention(s)	3 Negative mention(s)	0 Very Negative mention(s)	Neutral
CDW	27 Very Positive mention(s)	2 Positive mention(s)	3 Neutral mention(s)	3 Negative mention(s)	0 Very Negative mention(s)	Positive

Do analysts prefer GAP or CDW?

GAP presently has a consensus target price of $27.93, suggesting a potential upside of 33.84%. CDW has a consensus target price of $202.00, suggesting a potential upside of 21.62%. Given GAP's stronger consensus rating and higher possible 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)	2 Buy rating(s)	0 Strong Buy rating(s)	2.33

Do institutionals and insiders hold more shares of 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, 0.8% 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 is poised for long-term growth.

Is GAP or CDW more profitable?

GAP has a net margin of 5.80% compared to CDW's net margin of 4.92%. CDW's return on equity of 53.63% beat GAP's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
GAP	5.80%	27.86%	7.51%
CDW	4.92%	53.63%	8.58%

Which has preferable 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	9.04
CDW	$21.00B	1.04	$1.08B	$8.05	20.63

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 1.5%. GAP pays out 28.6% of its earnings in the form of a dividend. CDW pays out 31.1% 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.

Summary

CDW beats GAP on 11 of the 19 factors compared between the two stocks.