Stein Mart (SMRT) versus Its Rivals Financial Analysis

Stein Mart (NASDAQ: SMRT) is one of 31 public companies in the “Apparel & Accessories Retailers” industry, but how does it compare to its competitors? We will compare Stein Mart to similar companies based on the strength of its analyst recommendations, institutional ownership, valuation, earnings, risk, profitability and dividends.

Risk & Volatility

Stein Mart has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500. Comparatively, Stein Mart’s competitors have a beta of 0.79, indicating that their average stock price is 21% less volatile than the S&P 500.

Profitability

This table compares Stein Mart and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Stein Mart -2.18% -44.60% -5.30%
Stein Mart Competitors 2.48% 5.48% 6.35%

Earnings & Valuation

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

Gross Revenue NetIncome Price/Earnings Ratio
Stein Mart $1.36 billion $400,000.00 -1.77
Stein Mart Competitors $3.99 billion $181.38 million 963.38

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Stein Mart and its competitors, 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 522 3075 2959 86 2.39

As a group, “Apparel & Accessories Retailers” companies have a potential upside of 7.29%. Given Stein Mart’s competitors higher probable upside, analysts clearly believe Stein Mart has less favorable growth aspects than its competitors.

Institutional and Insider Ownership

26.5% of Stein Mart shares are held by institutional investors. Comparatively, 74.3% of shares of all “Apparel & Accessories Retailers” companies are held by institutional investors. 34.7% of Stein Mart shares are held by company insiders. Comparatively, 16.4% of shares of all “Apparel & Accessories 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.

Dividends

Stein Mart pays an annual dividend of $0.15 per share and has a dividend yield of 13.6%. Stein Mart pays out -24.2% of its earnings in the form of a dividend. As a group, “Apparel & Accessories Retailers” companies pay a dividend yield of 2.7% and pay out 56.5% of their earnings in the form of a dividend. Stein Mart is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Summary

Stein Mart competitors 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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