GAP (NYSE:GAP – Get Free Report) is one of 285 publicly-traded companies in the “Specialty Retail” industry, but how does it weigh in compared to its peers? We will compare GAP to similar businesses based on the strength of its institutional ownership, earnings, analyst recommendations, valuation, profitability, dividends and risk.
Risk and Volatility
GAP has a beta of 2.05, indicating that its share price is 105% more volatile than the S&P 500. Comparatively, GAP’s peers have a beta of 1.66, indicating that their average share price is 66% more volatile than the S&P 500.
Valuation and Earnings
This table compares GAP and its peers revenue, earnings per share and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| GAP | $15.37 billion | $816.00 million | 6.64 |
| GAP Competitors | $7.06 billion | $386.47 million | 32.04 |
GAP has higher revenue and earnings than its peers. GAP is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Dividends
GAP pays an annual dividend of $0.70 per share and has a dividend yield of 3.1%. GAP pays out 20.9% of its earnings in the form of a dividend. As a group, “Specialty Retail” companies pay a dividend yield of 2.1% and pay out 35.6% of their earnings in the form of a dividend. GAP has increased its dividend for 1 consecutive years. GAP is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.
Profitability
This table compares GAP and its peers’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| GAP | 8.14% | 19.72% | 5.94% |
| GAP Competitors | -3.67% | -14.10% | 3.17% |
Insider and Institutional Ownership
58.8% of GAP shares are held by institutional investors. Comparatively, 51.6% of shares of all “Specialty Retail” companies are held by institutional investors. 31.0% of GAP shares are held by company insiders. Comparatively, 20.5% of shares of all “Specialty Retail” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a summary of current ratings and target prices for GAP and its peers, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| GAP | 1 | 12 | 6 | 2 | 2.43 |
| GAP Competitors | 3663 | 15557 | 21591 | 586 | 2.46 |
GAP currently has a consensus price target of $27.07, suggesting a potential upside of 21.74%. As a group, “Specialty Retail” companies have a potential upside of 7.80%. Given GAP’s higher possible upside, analysts plainly believe GAP is more favorable than its peers.
Summary
GAP beats its peers on 12 of the 15 factors compared.
GAP Company Profile
Gap, Inc. operates as a global apparel retail company, which offers clothing, apparel, accessories, and personal care products for men, women, and children. The firm operates through the following segments: Gap Global, Old Navy Global, Banana Republic Global, Athleta, and Other. The Gap Global segment includes apparel and accessories for men and women under the Gap brand, along with the GapKids, BabyGap, GapMaternity, GapBody, and GapFit collections. The Old Navy Global segment offers clothing and accessories for adults and children. The Banana Republic Global segment provides clothing, eyewear, jewelry, shoes, handbags, and fragrances. The Athleta segment offers fitness apparel for women. The company founded by Donald G. Fisher and Doris F. Fisher in July 1969 and is headquartered in San Francisco, CA.
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