GAP (GAP) Competitors

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

Do analysts prefer CDW or GAP?

CDW currently has a consensus target price of $208.50, indicating a potential upside of 15.30%. GAP has a consensus target price of $28.53, indicating a potential upside of 40.66%. Given GAP's stronger consensus rating and higher probable upside, analysts clearly believe GAP is more favorable than CDW.

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

Is CDW or GAP a better dividend stock?

CDW pays an annual dividend of $2.50 per share and has a dividend yield of 1.4%. GAP pays an annual dividend of $0.66 per share and has a dividend yield of 3.3%. CDW pays out 31.0% of its earnings in the form of a dividend. GAP pays out 28.6% 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. CDW has increased its dividend for 10 consecutive years and GAP has increased its dividend for 1 consecutive years. GAP is clearly the better dividend stock, given its higher yield and lower payout ratio.

Which has higher earnings and valuation, CDW or GAP?

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
CDW	$21.33B	1.12	$1.08B	$8.07	22.41
GAP	$15.09B	0.51	$844M	$2.31	8.78

Which has more volatility and risk, CDW or GAP?

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

Is CDW or GAP 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
CDW	5.10%	54.90%	8.75%
GAP	5.80%	27.86%	7.51%

Does the media prefer CDW or GAP?

In the previous week, GAP had 9 more articles in the media than CDW. MarketBeat recorded 27 mentions for GAP and 18 mentions for CDW. CDW's average media sentiment score of 0.92 beat GAP's score of 0.09 indicating that CDW is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
CDW	10 Very Positive mention(s)	3 Positive mention(s)	5 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
GAP	3 Very Positive mention(s)	4 Positive mention(s)	12 Neutral mention(s)	6 Negative mention(s)	1 Very Negative mention(s)	Neutral

Do institutionals and insiders believe in CDW or GAP?

93.2% of CDW shares are owned by institutional investors. Comparatively, 58.8% of GAP shares are owned by institutional investors. 0.8% of CDW shares are owned by insiders. Comparatively, 30.6% of GAP shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

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