GPS vs. ANF, URBN, AEO, FL, BKE, CAL, GES, SCVL, ZUMZ, and DBI
Should you be buying GAP stock or one of its competitors? The main competitors of GAP include Abercrombie & Fitch (ANF), 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.
GAP (NYSE:GPS) and Abercrombie & Fitch (NYSE:ANF) are both mid-cap retail/wholesale companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, risk, media sentiment, valuation, dividends, profitability, analyst recommendations, institutional ownership and community ranking.
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.
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 news media.
58.8% of GAP shares are held by institutional investors. 30.8% of GAP shares are held by insiders. Comparatively, 3.8% of Abercrombie & Fitch shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
GAP currently has a consensus price target of $26.11, suggesting a potential upside of 21.79%. Abercrombie & Fitch has a consensus price target of $178.00, suggesting a potential upside of 16.65%. Given GAP's stronger consensus rating and higher possible upside, equities research 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.
GAP pays an annual dividend of $0.60 per share and has a dividend yield of 2.8%. Abercrombie & Fitch pays an annual dividend of $0.80 per share and has a dividend yield of 0.5%. GAP pays out 33.3% of its earnings in the form of a dividend. Abercrombie & Fitch pays out 10.0% 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 a beta of 2.38, suggesting that its share price is 138% more volatile than the S&P 500. Comparatively, Abercrombie & Fitch has a beta of 1.54, suggesting that its share price is 54% more volatile than the S&P 500.
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.
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 GPS 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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