Roots (OTCMKTS:RROTF) & GAP (NYSE:GPS) Head-To-Head Review

Roots (OTCMKTS:RROTF) and GAP (NYSE:GPS) are both consumer cyclical companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Roots	N/A	N/A	N/A
GAP	4.52%	27.57%	6.30%

Valuation & Earnings

This table compares Roots and GAP”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Roots	N/A	N/A	N/A	N/A	N/A
GAP	$15.00 billion	0.00	$502.00 million	$1.80	N/A

GAP has higher revenue and earnings than Roots.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Roots and GAP, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Roots	0	0	0	0	N/A
GAP	0	7	8	0	2.53

GAP has a consensus target price of $27.08, indicating a potential upside of ?. Given GAP’s higher possible upside, analysts plainly believe GAP is more favorable than Roots.

Insider & Institutional Ownership

58.8% of GAP shares are owned by institutional investors. 30.8% of GAP shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

GAP beats Roots on 8 of the 8 factors compared between the two stocks.

About Roots

Roots Corporation, together with its subsidiaries, designs, markets, and sells apparel, leather goods, footwear, and accessories under the Roots brand in Canada and internationally. The company operates through two segments, Direct-To-Consumer, and Partners and Other. The Direct-to-Consumer segment sells products through the company's corporate retail stores and ecommerce. The Partners and Other segment involved in the wholesale of Roots branded products to the company's international operating partners, licensees, and wholesale customers. Roots Corporation was founded in 1973 and is headquartered in Toronto, Canada.

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.