Reviewing Lowe’s Companies (LOW) & Its Peers

Lowe’s Companies (NYSE:LOW) is one of 285 public companies in the “Specialty Retail” industry, but how does it contrast to its peers? We will compare Lowe’s Companies to related businesses based on the strength of its earnings, analyst recommendations, dividends, profitability, institutional ownership, valuation and risk.

Valuation and Earnings

This table compares Lowe’s Companies and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Lowe’s Companies	$86.29 billion	$6.65 billion	19.25
Lowe’s Companies Competitors	$7.06 billion	$386.51 million	31.37

Lowe’s Companies has higher revenue and earnings than its peers. Lowe’s Companies 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.

Dividends

Lowe’s Companies pays an annual dividend of $5.00 per share and has a dividend yield of 2.2%. Lowe’s Companies pays out 42.3% of its earnings in the form of a dividend. As a group, “Specialty Retail” companies pay a dividend yield of 2.0% and pay out 35.7% of their earnings in the form of a dividend. Lowe’s Companies has increased its dividend for 53 consecutive years.

Profitability

This table compares Lowe’s Companies and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lowe’s Companies	7.34%	-75.67%	12.82%
Lowe’s Companies Competitors	-3.59%	-28.53%	3.21%

Risk and Volatility

Lowe’s Companies has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500. Comparatively, Lowe’s Companies’ peers have a beta of 1.91, suggesting that their average share price is 91% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Lowe’s Companies and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lowe’s Companies	3	11	22	1	2.57
Lowe’s Companies Competitors	3701	15637	21656	594	2.46

Lowe’s Companies presently has a consensus target price of $254.58, indicating a potential upside of 11.79%. As a group, “Specialty Retail” companies have a potential upside of 5.17%. Given Lowe’s Companies’ stronger consensus rating and higher probable upside, research analysts plainly believe Lowe’s Companies is more favorable than its peers.

Institutional and Insider Ownership

74.1% of Lowe’s Companies shares are held by institutional investors. Comparatively, 51.9% of shares of all “Specialty Retail” companies are held by institutional investors. 0.3% of Lowe’s Companies shares are held by insiders. Comparatively, 20.5% of shares of all “Specialty Retail” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Lowe’s Companies beats its peers on 10 of the 15 factors compared.

Lowe’s Companies Company Profile

Lowe’s Companies, Inc. is a home improvement retailer serving homeowners, do-it-yourself customers and professional contractors. The company sells products for construction, maintenance, repair and renovation through its retail stores and online channels. Its offerings include appliances, tools, hardware, lumber and building materials, paint, plumbing and electrical supplies, and products for lawn and garden. Lowe’s also provides services such as installation and other project support. Founded in 1921 in North Wilkesboro, North Carolina, Lowe’s has grown into a major retailer operating across the United States.