Financial Survey: Aritzia (OTCMKTS:ATZAF) versus GAP (NYSE:GPS)

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

Institutional & Insider Ownership

58.8% of GAP shares are owned by institutional investors. 30.8% of GAP shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Aritzia and GAP, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aritzia	0	0	1	0	3.00
GAP	0	7	9	0	2.56

Aritzia currently has a consensus target price of $40.33, indicating a potential upside of 17.76%. GAP has a consensus target price of $26.51, indicating a potential upside of ∞. Given GAP’s higher probable upside, analysts clearly believe GAP is more favorable than Aritzia.

Valuation and Earnings

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

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

GAP has higher revenue and earnings than Aritzia.

Profitability

This table compares Aritzia and GAP’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aritzia	N/A	N/A	N/A
GAP	4.52%	27.57%	6.30%

Summary

GAP beats Aritzia on 8 of the 9 factors compared between the two stocks.

About Aritzia

Aritzia Inc., together with its subsidiaries, designs and sells apparel and accessories for women in the United States and Canada. The company offers t-shirts and tops, sweaters, shirts and blouses, bodysuits, sweatshirts, blazers, jacket and coats, and dresses; pants, denim, leggings and bike shorts, sweatpants, skirts, shorts, sweatshorts, and jumpsuits and rompers; accessories, such as socks, hats, bags, scarves, belts, and intimates; swimwear; and shoes. It offers its products under the Wilfred, Wilfred Free, Babaton, The Group by Babaton, Babaton 101, Ten by Babaton, Tna, Little Moon, Sunday Best, Super World, TnAction, Denim Forum, Auxiliary, Talula, Tna x EMU, New Era, and Merrell brands. The company was formerly known as Aritzia Capital Corporation and changed its name to Aritzia Inc. in August 2016. Aritzia Inc. was founded in 1984 and is headquartered in Vancouver, Canada.

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.