Financial Contrast: Winmark (WINA) vs. Its Competitors
Winmark (NASDAQ: WINA) is one of 23 public companies in the “Other Specialty Retailers” industry, but how does it contrast to its peers? We will compare Winmark to similar companies based on the strength of its valuation, earnings, risk, dividends, institutional ownership, analyst recommendations and profitability.
Institutional & Insider Ownership
49.2% of Winmark shares are held by institutional investors. Comparatively, 60.7% of shares of all “Other Specialty Retailers” companies are held by institutional investors. 37.5% of Winmark shares are held by insiders. Comparatively, 23.0% of shares of all “Other Specialty Retailers” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Winmark pays an annual dividend of $0.44 per share and has a dividend yield of 0.3%. Winmark pays out 7.7% of its earnings in the form of a dividend. As a group, “Other Specialty Retailers” companies pay a dividend yield of 1.0% and pay out 26.0% of their earnings in the form of a dividend.
This table compares Winmark and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current recommendations and price targets for Winmark and its peers, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
As a group, “Other Specialty Retailers” companies have a potential downside of 4.60%. Given Winmark’s peers higher probable upside, analysts plainly believe Winmark has less favorable growth aspects than its peers.
Volatility & Risk
Winmark has a beta of 0.45, indicating that its share price is 55% less volatile than the S&P 500. Comparatively, Winmark’s peers have a beta of 0.86, indicating that their average share price is 14% less volatile than the S&P 500.
Earnings and Valuation
This table compares Winmark and its peers top-line revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Winmark||$69.75 million||$24.57 million||23.16|
|Winmark Competitors||$2.18 billion||$113.60 million||177.90|
Winmark’s peers have higher revenue and earnings than Winmark. Winmark is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Winmark peers beat Winmark on 8 of the 12 factors compared.
Winmark Corporation is a franchisor of five retail store concepts that buy, sell and trade gently used merchandise. The Company operates through two business segments: franchising and leasing. The franchising segment franchises value-oriented retail store concepts that buy, sell, trade and consign merchandise. The leasing segment includes Winmark Capital Corporation, its middle-market equipment leasing business and Wirth Business Credit, Inc., its small-ticket financing business. As of December 31, 2016, the Company had 1,186 franchised stores across the United States and Canada. The Company operates a middle-market equipment leasing business through its subsidiary, Winmark Capital Corporation. Its middle-market leasing business serves large and medium-sized businesses and focuses on technology-based assets. Additionally, the Company operates a small-ticket financing business through its subsidiary, Wirth Business Credit, Inc.
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