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

Mr Price Group ( OTCMKTS:MRPLY – Get Free Report ) and GAP ( NYSE:GPS – Get Free Report ) are both consumer cyclical companies, but which is the superior investment? We’ll compare the two companies based on dividend strength, earnings, valuation, institutional ownership, profitability, risk and analyst recommendations.

Earnings and Rating

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

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.

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

Institutional and privileged 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 owned by insiders. Strong institutional ownership is an indication that hedge funds, big money managers and endowments believe the stock is poised for long-term growth.

return

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

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 earnings as a dividend. GAP pays out 33.3% of earnings as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next few years.

Summary

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

About Mr Price Group

(Get a free report)

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 telecommunications segments. Offers clothing, underwear, footwear, cosmetics, children’s clothing, school clothing and accessories; children’s furniture and products; Sporting, outdoor and fitness products including footwear, clothing, equipment and accessories; smart casual fashion and women’s intimates; and home textile and decor products for the bedroom, living room, bathroom, kitchen and dining room. The company also offers credit services; insurance products; cellular products and services; mobile devices and accessories; and value-added services. It serves its customers through an omnichannel retail distribution of 2,702 company-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

(Get a free report)

The Gap, Inc. operates as a clothing 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 clothing and accessories for adults; 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 arrangements with third parties. 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 founded in 1969 and is headquartered in San Francisco, California.

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