Financial Survey: Hennes & Mauritz (HNNMY) vs. Its Rivals

Hennes & Mauritz (OTCMKTS:HNNMY) is one of 60 publicly-traded companies in the “RETAIL – APP/SHOE” industry, but how does it weigh in compared to its peers? We will compare Hennes & Mauritz to similar companies based on the strength of its earnings, profitability, dividends, analyst recommendations, risk, institutional ownership and valuation.

Analyst Ratings

This is a summary of current ratings and recommmendations for Hennes & Mauritz and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hennes & Mauritz	1	3	2	0	2.17
Hennes & Mauritz Competitors	870	4914	5298	112	2.42

As a group, “RETAIL – APP/SHOE” companies have a potential upside of 25.46%. Given Hennes & Mauritz’s peers stronger consensus rating and higher possible upside, analysts clearly believe Hennes & Mauritz has less favorable growth aspects than its peers.

Valuation and Earnings

This table compares Hennes & Mauritz and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Hennes & Mauritz	$22.18 billion	$1.11 billion	18.64
Hennes & Mauritz Competitors	$5.94 billion	$362.55 million	51.80

Hennes & Mauritz has higher revenue and earnings than its peers. Hennes & Mauritz is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Dividends

Hennes & Mauritz pays an annual dividend of $0.11 per share and has a dividend yield of 4.2%. Hennes & Mauritz pays out 78.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “RETAIL – APP/SHOE” companies pay a dividend yield of 2.5% and pay out 53.2% of their earnings in the form of a dividend.

Institutional and Insider Ownership

0.0% of Hennes & Mauritz shares are held by institutional investors. Comparatively, 66.4% of shares of all “RETAIL – APP/SHOE” companies are held by institutional investors. 19.7% of shares of all “RETAIL – APP/SHOE” companies are held 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.

Profitability

This table compares Hennes & Mauritz and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hennes & Mauritz	4.68%	24.84%	6.11%
Hennes & Mauritz Competitors	-6.37%	2.23%	1.43%

Risk and Volatility

Hennes & Mauritz has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500. Comparatively, Hennes & Mauritz’s peers have a beta of 1.30, indicating that their average share price is 30% more volatile than the S&P 500.

Summary

Hennes & Mauritz peers beat Hennes & Mauritz on 9 of the 15 factors compared.

Hennes & Mauritz Company Profile

H & M Hennes & Mauritz AB (publ) provides clothing, accessories, footwear, cosmetics, home textiles, and homeware for women, men, and children worldwide. It offers sportswear, shoes, bags, beauty products, activewear, jeans, and ready-to-wear; and interior products, including bed linens, dinnerware, textiles, furniture, and lighting. The company provides its products under the H&M, H&M HOME, H&M Move, H&M Beauty, COS, Weekday, Monki, & Other Stories, ARKET, Afound, and Singular Society brand names. In addition, it operates Sellpy, a broad digital platform for second-hand fashion and other products; and Creator Studio, a global platform for merchandise design and production, as well as provides solutions to extend the useful life of unwanted garments through reuse and recycling under Looper Textile name. The company offers its products through online and physical stores. H & M Hennes & Mauritz AB (publ) was incorporated in 1943 and is headquartered in Stockholm, Sweden.