GAP (NYSE:GPS – Get Free Report) and JD Sports Fashion (OTCMKTS:JDDSF – Get Free Report) are both consumer cyclical companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, risk and dividends.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for GAP and JD Sports Fashion, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| GAP | 0 | 7 | 9 | 0 | 2.56 |
| JD Sports Fashion | 1 | 0 | 0 | 0 | 1.00 |
GAP currently has a consensus target price of $26.51, indicating a potential upside of 14.70%. Given GAP’s stronger consensus rating and higher probable upside, analysts plainly believe GAP is more favorable than JD Sports Fashion.
Profitability
This table compares GAP and JD Sports Fashion’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| GAP | 4.52% | 27.57% | 6.30% |
| JD Sports Fashion | N/A | N/A | N/A |
Valuation & Earnings
This table compares GAP and JD Sports Fashion’s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| GAP | $15.00 billion | 0.58 | $502.00 million | $1.80 | 12.84 |
| JD Sports Fashion | N/A | N/A | N/A | N/A | N/A |
GAP has higher revenue and earnings than JD Sports Fashion.
Institutional & Insider Ownership
58.8% of GAP shares are held by institutional investors. 30.8% of GAP shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Summary
GAP beats JD Sports Fashion on 9 of the 9 factors compared between the two stocks.
About GAP
The Gap, Inc. operates as an apparel retail company. The company offers apparel, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic, and Athleta brands. Its products include adult apparel and accessories; and fitness and lifestyle products for use in yoga, training, sports, travel, and everyday activities for women and girls. The company offers its products through company-operated stores, franchise stores, websites, and third-party arrangements. It has franchise agreements to operate Old Navy, Gap, Banana Republic, and Athleta stores and websites in Asia, Europe, Latin America, the Middle East, and Africa. The Gap, Inc. was incorporated in 1969 and is headquartered in San Francisco, California.
About JD Sports Fashion
JD Sports Fashion plc engages in the retail of branded sports fashion and outdoor clothing, footwear, accessories, and equipment for kids, women, and men. It operates through Sports Fashion and Outdoor segments. The company also retails leisure goods, sports goods, fishing gear, camping goods, boats, and bicycles, as well as distributes sports apparel and accessories, footwear, and apparel. It offers its products under the JD, Size?, Footpatrol, Finish Line, Shoe Palace, DTLR, Livestock, Sprinter, Sport Zone, Sizeer, JD Gyms, Tessuti, Scotts, Go Outdoors, Blacks, Millets, Tiso, Ultimate Outdoors, Fishing Republic, and Naylors brands. The company also operates online business. In addition, it licenses fashion brands and operates fitness centers; operates as online own label women’s fashion retailer; and manufactures and distributes professional fitness equipment. The company has operations in the United Kingdom, Andorra, Australia, Austria, Belgium, Bosnia and Herzegovina, Bulgaria, Canada, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, India, Indonesia, Israel, Italy, Latvia, Lithuania, Malaysia, the Netherlands, New Zealand, Poland, Portugal, Republic of Ireland, Romania, Serbia, Singapore, Slovakia, South Korea, Spain and the Canary Islands, Sweden, Thailand, and the United Arab Emirates. The company was founded in 1981 and is headquartered in Bury, the United Kingdom. JD Sports Fashion plc is a subsidiary of Pentland Group Limited.
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