CarParts.com (NASDAQ:PRTS) vs. GAP (NYSE:GAP) Financial Comparison

GAP (NYSE:GAP – Get Free Report) and CarParts.com (NASDAQ:PRTS – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, dividends, risk and profitability.

Earnings & Valuation

This table compares GAP and CarParts.com”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
GAP $15.33 billion 0.52 $816.00 million $3.35 6.80
CarParts.com $547.53 million 0.13 -$50.44 million ($4.33) -2.00

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

Institutional and Insider Ownership

58.8% of GAP shares are held by institutional investors. Comparatively, 75.3% of CarParts.com shares are held by institutional investors. 31.0% of GAP shares are held by company insiders. Comparatively, 6.6% of CarParts.com shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for GAP and CarParts.com, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GAP 1 11 5 2 2.42
CarParts.com 1 1 0 0 1.50

GAP currently has a consensus price target of $27.07, suggesting a potential upside of 18.88%. CarParts.com has a consensus price target of $6.00, suggesting a potential downside of 30.80%. Given GAP’s stronger consensus rating and higher probable upside, analysts clearly believe GAP is more favorable than CarParts.com.

Profitability

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

Net Margins Return on Equity Return on Assets
GAP 8.14% 19.72% 5.94%
CarParts.com -5.35% -47.19% -14.52%

Volatility & Risk

GAP has a beta of 2.05, suggesting that its stock price is 105% more volatile than the S&P 500. Comparatively, CarParts.com has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500.

Summary

GAP beats CarParts.com on 14 of the 15 factors compared between the two stocks.

About GAP

(Get Free Report)

Gap, Inc. operates as a global apparel retail company, which offers clothing, apparel, accessories, and personal care products for men, women, and children. The firm operates through the following segments: Gap Global, Old Navy Global, Banana Republic Global, Athleta, and Other. The Gap Global segment includes apparel and accessories for men and women under the Gap brand, along with the GapKids, BabyGap, GapMaternity, GapBody, and GapFit collections. The Old Navy Global segment offers clothing and accessories for adults and children. The Banana Republic Global segment provides clothing, eyewear, jewelry, shoes, handbags, and fragrances. The Athleta segment offers fitness apparel for women. The company founded by Donald G. Fisher and Doris F. Fisher in July 1969 and is headquartered in San Francisco, CA.

About CarParts.com

(Get Free Report)

CarParts.com, Inc., together with its subsidiaries, operates as an online provider of aftermarket auto parts and accessories in the United States and the Philippines. It offers replacement parts, such as parts for the exterior of an automobile; mirror products; engine and chassis components, as well as other mechanical and electrical parts; and performance parts and accessories. The company sells its products to individual customers through its flagship website www.carparts.com and app; online marketplaces, including third-party auction sites and shopping portals; and auto parts wholesale distributors. The company was formerly known as U.S. Auto Parts Network, Inc. and changed its name to CarParts.com, Inc. in July 2020. CarParts.com, Inc. was incorporated in 1995 and is headquartered in Torrance, California.

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.