Comparing Asos Pls (OTCMKTS:ASOMY) and GAP (NYSE:GAP)

Asos Pls (OTCMKTS:ASOMY) and GAP (NYSE:GAP) are both retail/wholesale companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Volatility & Risk

Asos Pls has a beta of 2.21, meaning that its share price is 121% more volatile than the S&P 500. Comparatively, GAP has a beta of 2.11, meaning that its share price is 111% more volatile than the S&P 500.

Insider and Institutional Ownership

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Asos Pls and GAP, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Asos Pls	0	0	0	2	4.00
GAP	0	4	11	2	2.88

GAP has a consensus price target of $30.62, indicating a potential upside of 24.99%. Given GAP’s higher possible upside, analysts clearly believe GAP is more favorable than Asos Pls.

Earnings and Valuation

This table compares Asos Pls and GAP”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Asos Pls	$3.23 billion	0.11	-$388.99 million	N/A	N/A
GAP	$15.37 billion	0.58	$816.00 million	$2.15	11.39

GAP has higher revenue and earnings than Asos Pls.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Asos Pls	N/A	N/A	N/A
GAP	5.31%	22.98%	6.70%

Summary

GAP beats Asos Pls on 10 of the 12 factors compared between the two stocks.

About Asos Pls

ASOS Plc operates as an online fashion retailer in the United Kingdom, the United States, Australia, France, Germany, Spain, Italy, Sweden, the Netherlands, Denmark, Poland, and internationally. It offers womenswear and menswear products. The company sells its products under the ASOS Design, ASOS Edition, ASOS Luxe, ASOS 4505, Collusion, Reclaimed Vintage, Topshop, Topman, Miss Selfridge, HIIT, AsYou, Dark Future, UNRVLLD/SPPLY, Crooked Tongues, Daysocial, Actual, and Weekend Collective brands, as well as through third-party brands. It is also involved in the employer of marketing staff and payment processing businesses, as well as acts as a vehicle for issue of convertible bonds. ASOS Plc was incorporated in 2000 and is headquartered in London, the United Kingdom.

About GAP

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.