GPS vs. ANF, AEO, URBN, JWN, FIVE, SFM, MNSO, LAD, MTCH, and W
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), Five Below (FIVE), Sprouts Farmers Market (SFM), MINISO Group (MNSO), Lithia Motors (LAD), Match Group (MTCH), and Wayfair (W). These companies are all part of the "retail/wholesale" sector.
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 valuation, profitability, dividends, analyst recommendations, earnings, community ranking, institutional ownership, media sentiment and risk.
GAP has a beta of 2.34, meaning that its share price is 134% more volatile than the S&P 500. Comparatively, Abercrombie & Fitch has a beta of 1.57, meaning that its share price is 57% 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.
Abercrombie & Fitch received 21 more outperform votes than GAP when rated by MarketBeat users. Likewise, 59.74% of users gave Abercrombie & Fitch an outperform vote while only 52.04% of users gave GAP an outperform vote.
In the previous week, GAP had 13 more articles in the media than Abercrombie & Fitch. MarketBeat recorded 22 mentions for GAP and 9 mentions for Abercrombie & Fitch. Abercrombie & Fitch's average media sentiment score of 0.91 beat GAP's score of 0.30 indicating that Abercrombie & Fitch is being referred to more favorably in the news media.
GAP presently has a consensus target price of $21.15, suggesting a potential downside of 2.10%. Abercrombie & Fitch has a consensus target price of $135.71, suggesting a potential downside of 2.79%. Given GAP's higher probable upside, analysts clearly believe GAP is more favorable than Abercrombie & Fitch.
Abercrombie & Fitch has a net margin of 7.67% compared to GAP's net margin of 3.37%. Abercrombie & Fitch's return on equity of 38.80% beat GAP's return on equity.
58.8% of GAP shares are owned by institutional investors. 30.8% of GAP shares are owned by company insiders. Comparatively, 3.8% of Abercrombie & Fitch shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Summary
Abercrombie & Fitch beats GAP on 9 of the 17 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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