Critical Comparison: The Gap (NYSE:GPS) & PreVu (OTCMKTS:PRVU)
The Gap (NYSE:GPS) and PreVu (OTCMKTS:PRVU) are both retail/wholesale companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, dividends, profitability, valuation, analyst recommendations and institutional ownership.
Valuation & Earnings
This table compares The Gap and PreVu’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|The Gap||$16.38 billion||0.51||$351.00 million||$1.97||11.28|
Risk and Volatility
The Gap has a beta of 1.55, indicating that its stock price is 55% more volatile than the S&P 500. Comparatively, PreVu has a beta of -15.73, indicating that its stock price is 1,673% less volatile than the S&P 500.
This is a summary of current recommendations for The Gap and PreVu, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
The Gap presently has a consensus price target of $23.26, indicating a potential upside of 4.65%. Given The Gap’s higher possible upside, equities analysts plainly believe The Gap is more favorable than PreVu.
Insider and Institutional Ownership
54.9% of The Gap shares are held by institutional investors. 45.3% of The Gap shares are held by company insiders. Comparatively, 70.6% of PreVu shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This table compares The Gap and PreVu’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
The Gap beats PreVu on 5 of the 9 factors compared between the two stocks.
The Gap Company Profile
The Gap, Inc. operates as an apparel retail company worldwide. The company offers apparel, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic, Athleta, Intermix, Janie and Jack, and Hill City brands. Its products include denim, tees, fleece, khakis, and other products; and fitness and lifestyle products for use in yoga, training, sports, travel, and everyday activities to women and girls. The company offers its products through company-operated stores, franchise stores, Websites, third-party arrangements, and catalogs. It has franchise agreements with unaffiliated franchisees to operate Old Navy, Gap, and Banana Republic stores in Asia, Europe, Latin America, the Middle East, and Africa. As of February 1, 2020, the company had 3,345 company-operated stores; and 574 franchise stores, as well as online. The Gap, Inc. was founded in 1969 and is headquartered in San Francisco, California.
PreVu Company Profile
PreVu, Inc. retails leather accessories, outerwear, and apparel through stores in the United States. Its products include men's and women's fashion leather jackets, handbags, and other accessories. The company offers its products under various trade names, brand names, trademarks, and service marks, including M. Julian, Maxima, Pelle Studio, Wilsons The Leather Experts, Tannery West, Georgetown Leather Design, The Wallet Works, Wilsons Leather, Wilsons Leather Outlet, Handcrafted by Wilsons The Leather Experts, and Vintage by Wilsons The Leather Experts. The company offers its products through its stores in malls and airports. PreVu, Inc. was formerly known as Wilsons The Leather Experts Inc. and changed its name to PreVu, Inc. in July 2008. The company was founded in 1996 and is based in Brooklyn Park, Minnesota. On September 12, 2008, PreVu, Inc. filed a voluntary petition for liquidation under Chapter 7 in the U.S. Bankruptcy Court for the District of Delaware. It is in joint administration with River Hills PreVu, Inc.
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