Lowe’s Companies (LOW) & Its Peers Head to Head Comparison

by · The Markets Daily

Lowe’s Companies (NYSE:LOWGet 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 MarginsReturn on EquityReturn on Assets
Lowe’s Companies8.22%-49.12%15.07%
Lowe’s Companies Competitors6.52%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 RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
Lowe’s Companies191602.58
Lowe’s Companies Competitors17313172027382.54

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 RevenueNet IncomePrice/Earnings Ratio
Lowe’s Companies$83.67 billion$6.96 billion18.28
Lowe’s Companies Competitors$26.60 billion$2.36 billion16.73

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

(Get Free Report)

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.