Contrasting Warby Parker (WRBY) and Its Peers

Warby Parker (NYSE:WRBY) is one of 285 publicly-traded companies in the “Specialty Retail” industry, but how does it compare to its competitors? We will compare Warby Parker to related companies based on the strength of its profitability, earnings, analyst recommendations, institutional ownership, valuation, risk and dividends.

Analyst Ratings

This is a summary of current recommendations and price targets for Warby Parker and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Warby Parker	1	3	6	1	2.64
Warby Parker Competitors	3666	15567	21600	588	2.46

Warby Parker presently has a consensus target price of $30.00, suggesting a potential upside of 37.29%. As a group, “Specialty Retail” companies have a potential upside of 7.77%. Given Warby Parker’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Warby Parker is more favorable than its competitors.

Profitability

This table compares Warby Parker and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Warby Parker	0.85%	3.36%	1.72%
Warby Parker Competitors	-3.69%	-13.95%	3.18%

Risk & Volatility

Warby Parker has a beta of 1.95, meaning that its share price is 95% more volatile than the S&P 500. Comparatively, Warby Parker’s competitors have a beta of 1.91, meaning that their average share price is 91% more volatile than the S&P 500.

Institutional & Insider Ownership

93.2% of Warby Parker shares are held by institutional investors. Comparatively, 51.6% of shares of all “Specialty Retail” companies are held by institutional investors. 16.8% of Warby Parker shares are held by insiders. Comparatively, 20.5% of shares of all “Specialty Retail” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Warby Parker and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Warby Parker	$871.91 million	$1.64 million	312.16
Warby Parker Competitors	$7.05 billion	$386.47 million	32.09

Warby Parker’s competitors have higher revenue and earnings than Warby Parker. Warby Parker 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.

Summary

Warby Parker beats its competitors on 9 of the 13 factors compared.

Warby Parker Company Profile

Warby Parker Inc. provides eyewear products in the United States and Canada. The company offers eyeglasses, sunglasses, light-responsive lenses, blue-light-filtering lenses, non-prescription lenses, and contact lenses. It also provides accessories, such as cases, lenses kit with anti-fog spray, pouches, and anti-fog lens spray through its retail stores, website, and mobile apps. In addition, the company offers eye exams and vision tests. Warby Parker Inc. was incorporated in 2009 and is headquartered in New York, New York.