GAP (NYSE:GAP – Get Free Report) and CarParts.com (NASDAQ:PRTS – Get Free Report) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, earnings, profitability and institutional ownership.
Risk and Volatility
GAP has a beta of 2.05, indicating that its stock price is 105% more volatile than the S&P 500. Comparatively, CarParts.com has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings 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 |
Insider and Institutional Ownership
58.8% of GAP shares are owned by institutional investors. Comparatively, 75.3% of CarParts.com shares are owned by institutional investors. 31.0% of GAP shares are owned by insiders. Comparatively, 6.6% of CarParts.com shares are owned 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.
Valuation and Earnings
This table compares GAP and CarParts.com”s gross 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.
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% |
Summary
GAP beats CarParts.com on 14 of the 15 factors compared between the two stocks.
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.
About CarParts.com
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.
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