Lowe’s Companies (LOW) & Its Peers Head to Head Comparison
by Mitch Edgeman · The Markets DailyLowe’s Companies (NYSE:LOW – Get Free Report) is one of 14 publicly-traded companies in the “RETAIL – HOME FRN” industry, but how does it weigh in compared to its competitors? We will compare Lowe’s Companies to similar companies based on the strength of its risk, analyst recommendations, institutional ownership, earnings, dividends, profitability and valuation.
Dividends
Lowe’s Companies pays an annual dividend of $4.60 per share and has a dividend yield of 2.1%. Lowe’s Companies pays out 38.1% of its earnings in the form of a dividend. As a group, “RETAIL – HOME FRN” companies pay a dividend yield of 2.5% and pay out 49.0% of their earnings in the form of a dividend. Lowe’s Companies has raised its dividend for 53 consecutive years.
Volatility & Risk
Lowe’s Companies has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500. Comparatively, Lowe’s Companies’ competitors have a beta of 1.48, indicating that their average share price is 48% more volatile than the S&P 500.
Insider and Institutional Ownership
74.1% of Lowe’s Companies shares are held by institutional investors. Comparatively, 67.1% of shares of all “RETAIL – HOME FRN” companies are held by institutional investors. 0.3% of Lowe’s Companies shares are held by company insiders. Comparatively, 5.2% of shares of all “RETAIL – HOME FRN” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Lowe’s Companies and its competitors’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Lowe’s Companies | 8.22% | -49.12% | 15.07% |
Lowe’s Companies Competitors | 6.52% | 33.77% | 8.67% |
Analyst Recommendations
This is a breakdown of current ratings for Lowe’s Companies and its competitors, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Lowe’s Companies | 1 | 9 | 16 | 0 | 2.58 |
Lowe’s Companies Competitors | 173 | 1317 | 2027 | 38 | 2.54 |
Lowe’s Companies currently has a consensus price target of $271.12, suggesting a potential upside of 22.88%. As a group, “RETAIL – HOME FRN” companies have a potential upside of 19.03%. Given Lowe’s Companies’ stronger consensus rating and higher probable upside, equities analysts clearly believe Lowe’s Companies is more favorable than its competitors.
Earnings and Valuation
This table compares Lowe’s Companies and its competitors top-line revenue, earnings per share and valuation.
Gross Revenue | Net Income | Price/Earnings Ratio | |
Lowe’s Companies | $83.67 billion | $6.96 billion | 18.28 |
Lowe’s Companies Competitors | $26.60 billion | $2.36 billion | 16.73 |
Lowe’s Companies has higher revenue and earnings than its competitors. Lowe’s Companies 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.
Summary
Lowe’s Companies beats its competitors on 10 of the 15 factors compared.
About Lowe’s Companies
Lowe’s Companies, Inc., together with its subsidiaries, operates as a home improvement retailer in the United States. The company offers a line of products for construction, maintenance, repair, remodeling, and decorating. It also provides home improvement products, such as appliances, seasonal and outdoor living, lawn and garden, lumber, kitchens and bath, tools, paint, millwork, hardware, flooring, rough plumbing, building materials, décor, and electrical. In addition, the company offers installation services through independent contractors in various product categories; and extended protection plans and repair services. It sells its national brand-name merchandise and private brand products to professional customers, homeowners, renters, businesses, and government. The company also sells its products through Lowes.com website; and through mobile applications. Lowe’s Companies, Inc. was founded in 1921 and is based in Mooresville, North Carolina.