Critical Contrast: West Marine (WMAR) versus Its Competitors

West Marine (NASDAQ: WMAR) is one of 21 public companies in the “Other Specialty Retailers” industry, but how does it weigh in compared to its competitors? We will compare West Marine to similar businesses based on the strength of its analyst recommendations, valuation, dividends, profitability, institutional ownership, earnings and risk.

Valuation & Earnings

This table compares West Marine and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
West Marine $697.67 million $39.13 million 41.82
West Marine Competitors $3.37 billion $363.72 million 4.99

West Marine’s competitors have higher revenue and earnings than West Marine. West Marine 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 Ratings

This is a summary of recent ratings and recommmendations for West Marine and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
West Marine 0 2 0 0 2.00
West Marine Competitors 333 927 1055 38 2.34

West Marine currently has a consensus target price of $10.49, indicating a potential downside of 19.13%. As a group, “Other Specialty Retailers” companies have a potential downside of 11.35%. Given West Marine’s competitors stronger consensus rating and higher probable upside, analysts plainly believe West Marine has less favorable growth aspects than its competitors.

Dividends

West Marine pays an annual dividend of $0.20 per share and has a dividend yield of 1.5%. West Marine pays out 64.5% of its earnings in the form of a dividend. As a group, “Other Specialty Retailers” companies pay a dividend yield of 1.1% and pay out 68.7% of their earnings in the form of a dividend. West Marine is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Profitability

This table compares West Marine and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
West Marine 8.58% 27.26% 18.86%
West Marine Competitors 22.63% -19.11% 6.46%

Insider & Institutional Ownership

57.9% of West Marine shares are held by institutional investors. Comparatively, 61.9% of shares of all “Other Specialty Retailers” companies are held by institutional investors. 27.5% of West Marine shares are held by company insiders. Comparatively, 22.7% of shares of all “Other Specialty Retailers” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility & Risk

West Marine has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500. Comparatively, West Marine’s competitors have a beta of 1.24, suggesting that their average stock price is 24% more volatile than the S&P 500.

Summary

West Marine competitors beat West Marine on 8 of the 15 factors compared.

West Marine Company Profile

West Marine, Inc. is a waterlife outfitter for cruisers, sailors, anglers and paddlesports enthusiasts. The Company offers a selection of core boating and water recreation products, primarily serving the needs of boat owners and professionals providing services to them. It services its customers through physical stores and two e-commerce Websites. It is a specialty retailer of boating supplies, gear, apparel, footwear and other waterlife-related products. It operates approximately 260 stores located in approximately 40 states, Puerto Rico and Canada. Its products include boating products and merchandise expansion products. Its boating products include maintenance, electronics, sailboat hardware, anchors/docking/moorings, engine systems, boats/outboards, ventilation, navigation, trailering, seating/boat covers and barbecues/appliances. Its merchandise expansion products include clothing accessories, fishing, watersports, paddlesports, coolers and waterlife lifestyle accessories.

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