GPS vs. ANF, AEO, URBN, JWN, LEVI, FIVE, LAD, MTCH, CAVA, and DDS
Should you be buying GAP stock or one of its competitors? The main competitors of GAP include Abercrombie & Fitch (ANF), American Eagle Outfitters (AEO), Urban Outfitters (URBN), Nordstrom (JWN), Levi Strauss & Co. (LEVI), Five Below (FIVE), Lithia Motors (LAD), Match Group (MTCH), CAVA Group (CAVA), and Dillard's (DDS). These companies are all part of the "retail/wholesale" sector.
Abercrombie & Fitch (NYSE:ANF) and GAP (NYSE:GPS) are both mid-cap retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their community ranking, risk, dividends, profitability, earnings, analyst recommendations, institutional ownership, valuation and media sentiment.
In the previous week, GAP had 3 more articles in the media than Abercrombie & Fitch. MarketBeat recorded 18 mentions for GAP and 15 mentions for Abercrombie & Fitch. GAP's average media sentiment score of 0.71 beat Abercrombie & Fitch's score of 0.19 indicating that Abercrombie & Fitch is being referred to more favorably in the media.
Abercrombie & Fitch has a beta of 1.58, suggesting that its share price is 58% more volatile than the S&P 500. Comparatively, GAP has a beta of 2.28, suggesting that its share price is 128% more volatile than the S&P 500.
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.
58.8% of GAP shares are held by institutional investors. 3.8% of Abercrombie & Fitch shares are held by insiders. Comparatively, 30.8% of GAP shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Abercrombie & Fitch received 22 more outperform votes than GAP when rated by MarketBeat users. Likewise, 59.80% of users gave Abercrombie & Fitch an outperform vote while only 52.05% of users gave GAP an outperform vote.
Abercrombie & Fitch presently has a consensus target price of $122.71, suggesting a potential upside of 6.91%. GAP has a consensus target price of $18.95, suggesting a potential downside of 6.37%. Given GAP's stronger consensus rating and higher possible upside, equities research analysts clearly believe Abercrombie & Fitch is more favorable than GAP.
Abercrombie & Fitch has a net margin of 7.67% compared to Abercrombie & Fitch's net margin of 3.37%. GAP's return on equity of 38.80% beat Abercrombie & Fitch's return on equity.
Summary
Abercrombie & Fitch beats GAP on 11 of the 18 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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