Comparing Lowe’s Companies (LOW) & Its Rivals

Lowe’s Companies (NYSE:LOW) is one of 14 publicly-traded companies in the “RETAIL – HOME FRN” industry, but how does it compare to its competitors? We will compare Lowe’s Companies to similar companies based on the strength of its profitability, dividends, risk, earnings, valuation, institutional ownership and analyst recommendations.

Risk and Volatility

Lowe’s Companies has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500. Comparatively, Lowe’s Companies’ competitors have a beta of 1.48, meaning that their average stock price is 48% more volatile than the S&P 500.

Dividends

Lowe’s Companies pays an annual dividend of $4.80 per share and has a dividend yield of 2.3%. Lowe’s Companies pays out 39.8% of its earnings in the form of a dividend. As a group, “RETAIL – HOME FRN” companies pay a dividend yield of 2.6% and pay out 49.5% of their earnings in the form of a dividend. Lowe’s Companies has increased its dividend for 53 consecutive years.

Valuation and Earnings

This table compares Lowe’s Companies and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Lowe’s Companies	$83.24 billion	$6.96 billion	17.60
Lowe’s Companies Competitors	$26.21 billion	$2.36 billion	16.26

Lowe’s Companies has higher revenue and earnings than its competitors. Lowe’s Companies is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Lowe’s Companies and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lowe’s Companies	1	9	16	0	2.58
Lowe’s Companies Competitors	171	1316	2026	38	2.54

Lowe’s Companies presently has a consensus price target of $271.12, suggesting a potential upside of 27.65%. As a group, “RETAIL – HOME FRN” companies have a potential upside of 23.44%. Given Lowe’s Companies’ stronger consensus rating and higher possible upside, research analysts clearly believe Lowe’s Companies is more favorable than its competitors.

Profitability

This table compares Lowe’s Companies and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lowe’s Companies	8.22%	-49.12%	15.07%
Lowe’s Companies Competitors	6.52%	33.77%	8.67%

Insider and Institutional Ownership

74.1% of Lowe’s Companies shares are owned by institutional investors. Comparatively, 67.1% of shares of all “RETAIL – HOME FRN” companies are owned by institutional investors. 0.3% of Lowe’s Companies shares are owned by company insiders. Comparatively, 5.2% of shares of all “RETAIL – HOME FRN” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Lowe’s Companies beats its competitors on 10 of the 15 factors compared.

Lowe’s Companies Company Profile

Lowe’s Companies, Inc., together with its subsidiaries, operates as a home improvement retailer in the United States. The company offers a line of products for construction, maintenance, repair, remodeling, and decorating. It also provides home improvement products, such as appliances, seasonal and outdoor living, lawn and garden, lumber, kitchens and bath, tools, paint, millwork, hardware, flooring, rough plumbing, building materials, décor, and electrical. In addition, the company offers installation services through independent contractors in various product categories; and extended protection plans and repair services. It sells its national brand-name merchandise and private brand products to professional customers, homeowners, renters, businesses, and government. The company also sells its products through Lowes.com website; and through mobile applications. Lowe’s Companies, Inc. was founded in 1921 and is based in Mooresville, North Carolina.