Reviewing FBC (OTCMKTS:FBCD) & GAP (NYSE:GPS)

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

Valuation and Earnings

This table compares FBC and GAP’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FBC	N/A	N/A	N/A	-0.20	N/A
GAP	$15.00 billion	0.00	$502.00 million	$1.80	N/A

GAP has higher revenue and earnings than FBC.

Profitability

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

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

Analyst Ratings

This is a summary of current ratings and target prices for FBC and GAP, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FBC	0	0	0	0	N/A
GAP	0	7	9	0	2.56

GAP has a consensus target price of $26.51, suggesting a potential upside of ∞.

Insider & Institutional Ownership

8.6% of FBC shares are owned by institutional investors. Comparatively, 58.8% of GAP shares are owned by institutional investors. 68.4% of FBC shares are owned by company insiders. Comparatively, 30.8% of GAP shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

GAP beats FBC on 8 of the 9 factors compared between the two stocks.

About FBC

FBC Holding, Inc. markets and sells streetwear clothing, headwear, and accessories for high school students in the United States. It offers shirts, jackets, hoodies, crewnecks, sweatpants, hats, and beanies under the FormRunner Apparel brand name. The company sells its product through 2 retail locations located in Scottsdale, Arizona, as well as through the online store FormRunnerApparel.com. FBC Holding, Inc. is based in Scottsdale, Arizona.

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.