Reviewing GAP (NYSE:GPS) and FBC (OTCMKTS:FBCD)

GAP (NYSE:GPS) and FBC (OTCMKTS:FBCD) are both consumer cyclical companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, dividends, analyst recommendations, risk and valuation.

Insider & Institutional Ownership

58.8% of GAP shares are owned by institutional investors. Comparatively, 8.6% of FBC shares are owned by institutional investors. 30.8% of GAP shares are owned by insiders. Comparatively, 68.4% of FBC shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares GAP and FBC’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%
FBC	N/A	N/A	N/A

Valuation & Earnings

This table compares GAP and FBC’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GAP	$15.00 billion	0.00	$502.00 million	$1.80	N/A
FBC	N/A	N/A	N/A	-0.20	0.00

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

Analyst Ratings

This is a summary of recent ratings and target prices for GAP and FBC, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GAP	0	7	9	0	2.56
FBC	0	0	0	0	N/A

GAP currently has a consensus price target of $26.51, indicating a potential upside of ∞.

Summary

GAP beats FBC on 8 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 FBC

FBC Holding, Inc. markets and sells streetwear clothing, headwear, and accessories for high school students in the United States. It offers shirts, jackets, hoodies, crewnecks, sweatpants, hats, and beanies under the FormRunner Apparel brand name. The company sells its product through 2 retail locations located in Scottsdale, Arizona, as well as through the online store FormRunnerApparel.com. FBC Holding, Inc. is based in Scottsdale, Arizona.