GAP (NYSE:GAP – Get Free Report) and Destination XL Group (NASDAQ:DXLG – Get Free Report) are both retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.
Earnings & Valuation
This table compares GAP and Destination XL Group”s top-line revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
GAP | $15.17 billion | 0.52 | $502.00 million | ($27.20) | -0.77 |
Destination XL Group | $496.64 million | 0.32 | $27.85 million | $0.38 | 7.24 |
GAP has higher revenue and earnings than Destination XL Group. GAP is trading at a lower price-to-earnings ratio than Destination XL Group, indicating that it is currently the more affordable of the two stocks.
Profitability
Net Margins | Return on Equity | Return on Assets | |
GAP | 5.05% | 28.89% | 6.92% |
Destination XL Group | 3.11% | 11.10% | 4.54% |
Insider and Institutional Ownership
73.5% of Destination XL Group shares are held by institutional investors. 12.4% of Destination XL Group shares are held 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.
Risk & Volatility
GAP has a beta of 2.35, suggesting that its share price is 135% more volatile than the S&P 500. Comparatively, Destination XL Group has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for GAP and Destination XL Group, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
GAP | 0 | 3 | 0 | 0 | 2.00 |
Destination XL Group | 0 | 1 | 1 | 0 | 2.50 |
GAP currently has a consensus price target of $27.00, suggesting a potential upside of 28.11%. Destination XL Group has a consensus price target of $3.50, suggesting a potential upside of 27.27%. Given GAP’s higher probable upside, equities research analysts plainly believe GAP is more favorable than Destination XL Group.
Summary
GAP beats Destination XL Group on 8 of the 14 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 Destination XL Group
Destination XL Group, Inc., together with its subsidiaries, operates as a specialty retailer of big and tall men's clothing and shoes in the United States. The company's stores offer sportswear and dresswear; fashion-neutral items, including jeans, casual pants, T-shirts, polo shirts, dress shirts, and suit separates; and casual clothing. It also provides vintage-screen T-shirts and wovens under various private labels. The company offers its products under the trade names of Destination XL, DXL, DXL Men's Apparel, DXL outlets, Casual Male XL, and Casual Male XL outlets. The company was formerly known as Casual Male Retail Group, Inc. and changed its name to Destination XL Group, Inc. in February 2013. Destination XL Group, Inc. was incorporated in 1976 and is headquartered in Canton, Massachusetts.
Receive News & Ratings for GAP Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for GAP and related companies with MarketBeat.com's FREE daily email newsletter.