Financial Analysis: Stein Mart (NASDAQ:SMRT) versus Its Peers

Stein Mart (NASDAQ: SMRT) is one of 38 public companies in the “Apparel & Accessories Retailers” industry, but how does it contrast to its rivals? We will compare Stein Mart to related businesses based on the strength of its risk, valuation, profitability, earnings, analyst recommendations, dividends and institutional ownership.

Dividends

Stein Mart pays an annual dividend of $0.15 per share and has a dividend yield of 15.3%. Stein Mart pays out -27.3% of its earnings in the form of a dividend. As a group, “Apparel & Accessories Retailers” companies pay a dividend yield of 3.0% and pay out 59.9% of their earnings in the form of a dividend. Stein Mart is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of current ratings for Stein Mart and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stein Mart 0 0 0 0 N/A
Stein Mart Competitors 597 3281 3153 94 2.39

As a group, “Apparel & Accessories Retailers” companies have a potential upside of 9.15%. Given Stein Mart’s rivals higher probable upside, analysts clearly believe Stein Mart has less favorable growth aspects than its rivals.

Institutional and Insider Ownership

31.4% of Stein Mart shares are owned by institutional investors. Comparatively, 74.0% of shares of all “Apparel & Accessories Retailers” companies are owned by institutional investors. 34.7% of Stein Mart shares are owned by company insiders. Comparatively, 16.9% of shares of all “Apparel & Accessories Retailers” companies are owned 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 Stein Mart and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Stein Mart -1.89% -34.59% -4.43%
Stein Mart Competitors 1.85% 5.28% 5.53%

Volatility & Risk

Stein Mart has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500. Comparatively, Stein Mart’s rivals have a beta of 0.81, meaning that their average share price is 19% less volatile than the S&P 500.

Earnings & Valuation

This table compares Stein Mart and its rivals gross revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Stein Mart $1.36 billion $400,000.00 -1.78
Stein Mart Competitors $3.70 billion $155.49 million 801.82

Stein Mart’s rivals have higher revenue and earnings than Stein Mart. Stein Mart 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.

Summary

Stein Mart rivals beat Stein Mart on 8 of the 11 factors compared.

About Stein Mart

Stein Mart, Inc. is a national retailer offering the fashion merchandise, service and presentation of a department or specialty store. The Company offers apparel for women and men, as well as accessories, shoes and home fashions. The Company’s target customers are women over 45 years old. The Company operates approximately 280 stores in over 30 states and an Internet store. Its stores are located in the Northeast, Midwest, Southeast, Texas and the Southwest. It is concentrated in the Southeast and Texas where over 180 of its stores are located. The Company’s stores offer a range of services, such as merchandise locator service, a Preferred Customer program, co-branded and private label credit card programs, and electronic gift cards. The Company’s merchants purchase products from approximately 1,200 vendors. It leases all of its store locations, generally for approximately 10 years with options to extend the lease term for over two or five year periods.

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