Analyzing Crown Crafts (CRWS) and Its Competitors

Crown Crafts (NASDAQ:CRWS) is one of 150 public companies in the “Household Durables” industry, but how does it weigh in compared to its rivals? We will compare Crown Crafts to similar companies based on the strength of its earnings, analyst recommendations, valuation, risk, institutional ownership, profitability and dividends.

Profitability

This table compares Crown Crafts and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Crown Crafts	6.55%	13.11%	7.20%
Crown Crafts Competitors	-2.56%	-17.20%	1.25%

Risk and Volatility

Crown Crafts has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500. Comparatively, Crown Crafts’ rivals have a beta of 1.77, indicating that their average stock price is 77% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Crown Crafts and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Crown Crafts	0	1	0	0	2.00
Crown Crafts Competitors	1821	7455	8182	320	2.39

As a group, “Household Durables” companies have a potential upside of 44.76%. Given Crown Crafts’ rivals stronger consensus rating and higher possible upside, analysts plainly believe Crown Crafts has less favorable growth aspects than its rivals.

Earnings and Valuation

This table compares Crown Crafts and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Crown Crafts	$82.27 million	$1.84 million	5.36
Crown Crafts Competitors	$5.33 billion	$313.99 million	8.81

Crown Crafts’ rivals have higher revenue and earnings than Crown Crafts. Crown Crafts is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Insider & Institutional Ownership

30.2% of Crown Crafts shares are owned by institutional investors. Comparatively, 53.6% of shares of all “Household Durables” companies are owned by institutional investors. 12.3% of Crown Crafts shares are owned by insiders. Comparatively, 18.2% of shares of all “Household Durables” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Crown Crafts pays an annual dividend of $0.12 per share and has a dividend yield of 4.8%. Crown Crafts pays out 25.5% of its earnings in the form of a dividend. As a group, “Household Durables” companies pay a dividend yield of 4.1% and pay out 31.7% of their earnings in the form of a dividend. Crown Crafts is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Summary

Crown Crafts rivals beat Crown Crafts on 10 of the 15 factors compared.

Crown Crafts Company Profile

Crown Crafts, Inc. designs, markets and distributes products for infants and young children. Its offerings include bedding, blankets, bibs, bath products, diaper bags and developmental toys. The company sells products under a portfolio of proprietary and licensed brands, including NoJo, Sassy and Manhattan Toy. Its products are distributed through a range of retail channels, including online retailers and specialty and mass-market stores. Crown Crafts has operated in the juvenile-products industry for decades and serves customers primarily in the United States.