Stamps.com (NASDAQ: STMP) is one of 21 public companies in the “Other Specialty Retailers” industry, but how does it compare to its competitors? We will compare Stamps.com to similar companies based on the strength of its earnings, valuation, analyst recommendations, institutional ownership, dividends, profitability and risk.

Volatility and Risk

Stamps.com has a beta of -0.04, suggesting that its stock price is 104% less volatile than the S&P 500. Comparatively, Stamps.com’s competitors have a beta of 1.24, suggesting that their average stock price is 24% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Stamps.com and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stamps.com 0 0 6 0 3.00
Stamps.com Competitors 331 927 1055 38 2.34

Stamps.com presently has a consensus target price of $201.67, suggesting a potential downside of 6.74%. As a group, “Other Specialty Retailers” companies have a potential downside of 12.30%. Given Stamps.com’s stronger consensus rating and higher possible upside, research analysts plainly believe Stamps.com is more favorable than its competitors.

Profitability

This table compares Stamps.com and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Stamps.com 26.66% 34.46% 21.63%
Stamps.com Competitors 22.63% -19.11% 6.46%

Institutional & Insider Ownership

61.9% of shares of all “Other Specialty Retailers” companies are owned by institutional investors. 11.1% of Stamps.com shares are owned by company insiders. Comparatively, 22.7% of shares of all “Other Specialty Retailers” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Stamps.com and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Stamps.com $419.64 million $171.47 million 35.05
Stamps.com Competitors $3.37 billion $363.72 million 4.67

Stamps.com’s competitors have higher revenue and earnings than Stamps.com. Stamps.com 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

Stamps.com beats its competitors on 7 of the 13 factors compared.

About Stamps.com

Stamps.com Inc. is a provider of Internet-based mailing and shipping solutions in the United States. The Company offers mailing and shipping products and services to its customers under the Stamps.com, Endicia, ShipStation, ShipWorks and ShippingEasy brands. It operates through the Internet Mailing and Shipping Services segment. Under the Stamps.com and Endicia brands, customers use its United States Postal Service (USPS) only solutions to mail and ship a range of mail pieces and packages through the USPS. USPS mailing and shipping solutions enable users to print electronic postage directly onto envelopes, plain paper, or labels using only a standard personal computer, printer and Internet connection. The Company offers USPS mailing and shipping services, multi-carrier shipping services, mailing and shipping services, branded insurance and international postage solutions. The Company offers customized postage under the PhotoStamps and PictureItPostage brand names.

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