Critical Comparison: Cabelas (CAB) vs. The Competition

Cabelas (NYSE: CAB) is one of 21 public companies in the “Other Specialty Retailers” industry, but how does it compare to its peers? We will compare Cabelas to related companies based on the strength of its risk, dividends, valuation, earnings, analyst recommendations, profitability and institutional ownership.

Earnings and Valuation

This table compares Cabelas and its peers gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Cabelas $4.06 billion $463.18 million 31.70
Cabelas Competitors $3.37 billion $363.69 million 4.34

Cabelas has higher revenue and earnings than its peers. Cabelas is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Risk & Volatility

Cabelas has a beta of 0.14, meaning that its share price is 86% less volatile than the S&P 500. Comparatively, Cabelas’ peers have a beta of 1.24, meaning that their average share price is 24% more volatile than the S&P 500.

Insider and Institutional Ownership

56.9% of Cabelas shares are held by institutional investors. Comparatively, 61.9% of shares of all “Other Specialty Retailers” companies are held by institutional investors. 21.0% of Cabelas shares are held by insiders. Comparatively, 22.7% of shares of all “Other Specialty Retailers” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for Cabelas and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cabelas 0 4 1 0 2.20
Cabelas Competitors 337 931 1059 38 2.34

Cabelas presently has a consensus target price of $61.50, indicating a potential upside of 0.00%. As a group, “Other Specialty Retailers” companies have a potential downside of 7.45%. Given Cabelas’ higher possible upside, equities research analysts clearly believe Cabelas is more favorable than its peers.

Profitability

This table compares Cabelas and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cabelas 3.18% 5.53% 1.32%
Cabelas Competitors 18.78% -65.05% 4.15%

Summary

Cabelas peers beat Cabelas on 8 of the 13 factors compared.

Cabelas Company Profile

Cabela’s Incorporated is an omni-channel retailer of hunting, fishing, camping, shooting sports and related outdoor merchandise. The Company offers its customers a selection of national and regional brand products, including its Cabela’s brand. The Company’s segments include Merchandising and Financial Services. The Merchandising segment sells products and services through the Company’s retail stores, its e-commerce Websites (Cabelas.com and Cabelas.ca), and its catalogs. The United States merchandising and Canada merchandising operating segments have been aggregated into its Merchandising segment. The Financial Services segment issues co-branded credit cards, which are available through all of its channels. The Company’s product assortment includes merchandise and equipment for hunting, fishing, marine use, camping, and recreational sport shooting, along with casual and outdoor apparel and footwear, optics, vehicle accessories, and gifts and home furnishings with an outdoor theme.

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