Financial Comparison: Five Below (FIVE) vs. Its Peers

Five Below (NASDAQ:FIVE) is one of 285 publicly-traded companies in the “Specialty Retail” industry, but how does it contrast to its peers? We will compare Five Below to related businesses based on the strength of its institutional ownership, analyst recommendations, risk, profitability, dividends, valuation and earnings.

Profitability

This table compares Five Below and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Five Below	11.65%	22.13%	9.86%
Five Below Competitors	-3.67%	-14.10%	3.17%

Analyst Ratings

This is a breakdown of current ratings for Five Below and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Five Below	0	12	19	0	2.61
Five Below Competitors	3663	15557	21592	586	2.46

Five Below presently has a consensus price target of $300.20, suggesting a potential upside of 25.62%. As a group, “Specialty Retail” companies have a potential upside of 8.35%. Given Five Below’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Five Below is more favorable than its peers.

Institutional & Insider Ownership

51.6% of shares of all “Specialty Retail” companies are held by institutional investors. 1.0% of Five Below shares are held by company insiders. Comparatively, 20.5% of shares of all “Specialty Retail” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk & Volatility

Five Below has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500. Comparatively, Five Below’s peers have a beta of 1.66, indicating that their average share price is 66% more volatile than the S&P 500.

Earnings and Valuation

This table compares Five Below and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Five Below	$4.76 billion	$358.64 million	21.45
Five Below Competitors	$7.24 billion	$386.47 million	32.29

Five Below’s peers have higher revenue and earnings than Five Below. Five Below 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.

Summary

Five Below peers beat Five Below on 7 of the 13 factors compared.

About Five Below

Five Below, Inc. operates as a specialty value retailer in the United States. The company offers range of accessories, which includes novelty socks, sunglasses, jewelry, scarves, gloves, hair accessories, athletic tops and bottoms, and t-shirts, as well as nail polish, lip gloss, fragrance, and branded cosmetics; and personalized living space products, such as lamps, posters, frames, fleece blankets, plush items, pillows, candles, incense, lighting, novelty décor, accent furniture, and related items, as well as provides storage options. It provides assortment of sports balls, team sports merchandise, and fitness accessories comprising hand weights, jump ropes, and gym balls; various games, such as board games, puzzles, collectibles, and toys, including remote control; and summer season sports, which includes pool, beach, and outdoor toys, as well as games and accessories. In addition, the company offers accessories for cell phones, tablets, audio, and computers, as well as cases, chargers, headphones, and other related items; and media products including books, video games, and DVDs. It also provides assortment of craft activity kits, and arts and crafts supplies, such as crayons, markers, and stickers; and school products comprising backpacks, fashion notebooks and journals, novelty pens and pencils, and locker accessories. Further, the company offers party products, which includes party goods, decorations, gag gifts, and greeting cards, as well as every day and special occasion merchandise; assortment of classic and novelty candy bars, movie-size box candy, seasonal-related candy, and gum and snack food products, as well as sells chilled drinks through coolers; and provides seasonally specific items used to celebrate and decorate for events. The company was formerly known as Cheap Holdings, Inc. and changed its name to Five Below, Inc. in August 2002. Five Below, Inc. was incorporated in 2002 and is headquartered in Philadelphia, Pennsylvania.