Head to Head Comparison: GAP (NYSE:GPS) & Mr Price Group (OTCMKTS:MRPLY)

Mr Price Group (OTCMKTS:MRPLY) and GAP (NYSE:GPS) are both consumer cyclical companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, profitability, risk and analyst recommendations.

Earnings & Valuation

This table compares Mr Price Group and GAP’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mr Price Group	N/A	N/A	N/A	$8.28	1.58
GAP	$15.00 billion	0.00	$502.00 million	$1.80	N/A

GAP has higher revenue and earnings than Mr Price Group. GAP is trading at a lower price-to-earnings ratio than Mr Price Group, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Mr Price Group and GAP, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mr Price Group	1	0	0	0	1.00
GAP	0	7	9	0	2.56

GAP has a consensus price target of $26.51, indicating a potential upside of ∞. Given GAP’s stronger consensus rating and higher possible upside, analysts plainly believe GAP is more favorable than Mr Price Group.

Institutional and Insider Ownership

0.3% of Mr Price Group shares are held by institutional investors. Comparatively, 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 hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Mr Price Group and GAP’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mr Price Group	N/A	N/A	N/A
GAP	4.52%	27.57%	6.30%

Dividends

Mr Price Group pays an annual dividend of $3.71 per share and has a dividend yield of 28.4%. GAP pays an annual dividend of $0.60 per share. Mr Price Group pays out 44.8% of its earnings in the form of a dividend. GAP pays out 33.3% 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.

Summary

GAP beats Mr Price Group on 11 of the 13 factors compared between the two stocks.

About Mr Price Group

Mr Price Group Limited, together with its subsidiaries, operates as a fashion retailer serving women, men, and children in South Africa and internationally. The company operates through Apparel, Home, Financial Services, and Telecoms segments. It offers clothing, underwear, footwear, cosmetics, babywear, school wear, and accessories; furniture and kids merchandise; sporting, outdoor, and fitness products comprising footwear, apparel, equipment, and accessories; women's smart and casual fashion and intimate wear; and home textile and decor products for bedroom, living-room, bathroom, kitchen, and dining-room. The company also provides credit services; insurance products; cellular products and services; mobile devices and accessories; and value-added services. It serves its customers through an omni-channel retail distribution of 2,702 corporate-owned stores and 8 franchised stores in Africa, as well as through its online channels. Mr Price Group Limited was founded in 1885 and is headquartered in Durban, South Africa.

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.