Financial Analysis: Virco Manufacturing (VIRC) and The Competition

Virco Manufacturing (NASDAQ:VIRC) is one of 354 publicly-traded companies in the “Commercial Services & Supplies” industry, but how does it weigh in compared to its peers? We will compare Virco Manufacturing to similar companies based on the strength of its valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Valuation and Earnings

This table compares Virco Manufacturing and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Virco Manufacturing	$199.65 million	$2.57 million	-38.75
Virco Manufacturing Competitors	$2.47 billion	$140.58 million	13.85

Virco Manufacturing’s peers have higher revenue and earnings than Virco Manufacturing. Virco Manufacturing 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.

Profitability

This table compares Virco Manufacturing and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Virco Manufacturing	-1.31%	-2.32%	-1.39%
Virco Manufacturing Competitors	-49.90%	-119.11%	-1.28%

Analyst Ratings

This is a breakdown of current recommendations for Virco Manufacturing and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Virco Manufacturing	1	1	0	0	1.50
Virco Manufacturing Competitors	1905	6250	9032	665	2.47

As a group, “Commercial Services & Supplies” companies have a potential upside of 10.42%. Given Virco Manufacturing’s peers stronger consensus rating and higher probable upside, analysts clearly believe Virco Manufacturing has less favorable growth aspects than its peers.

Institutional and Insider Ownership

31.0% of Virco Manufacturing shares are owned by institutional investors. Comparatively, 39.5% of shares of all “Commercial Services & Supplies” companies are owned by institutional investors. 16.9% of Virco Manufacturing shares are owned by insiders. Comparatively, 17.4% of shares of all “Commercial Services & Supplies” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

Virco Manufacturing pays an annual dividend of $0.10 per share and has a dividend yield of 1.6%. Virco Manufacturing pays out -62.5% of its earnings in the form of a dividend. As a group, “Commercial Services & Supplies” companies pay a dividend yield of 2.5% and pay out 67.5% of their earnings in the form of a dividend. Virco Manufacturing has raised its dividend for 2 consecutive years.

Volatility and Risk

Virco Manufacturing has a beta of 0.18, indicating that its stock price is 82% less volatile than the S&P 500. Comparatively, Virco Manufacturing’s peers have a beta of 2.50, indicating that their average stock price is 150% more volatile than the S&P 500.

Summary

Virco Manufacturing peers beat Virco Manufacturing on 12 of the 15 factors compared.

Virco Manufacturing Company Profile

Virco Mfg. Corporation engages in the design, production, and distribution of furniture in the United States and Canada. The company offers seating products, including 4-leg chairs, cantilever chairs, mobile task chairs and lab stools, tablet armchairs, steel-frame and floor rockers, series stools, hard plastic seating, folding and upholstered stack chairs, and plastic stack and upholstered ergonomic chairs. It also provides activity, butcher block, folding, office, technology, and mobile tables; desks and workstations, and instructor media stations and towers; chair desks and combo units, tablet arm and caster units, mobile workstations, student desks, and returns and credenzas; and computer furniture solutions. In addition, the company provides administrative office furniture, including desks, returns, bookcases, and other items, as well as steel storage cabinets, wardrobe tower cabinets, file credenzas, and mobile pedestals; laboratory furniture comprising steel-based science tables, table bases, lab stools, and wood-frame science tables; mobile furniture, such as mobile tables, mobile cabinets, and mobile chairs for school settings and offices; and handling and storage equipment, and stackable storage trucks. It serves public and private educational institutions, charter schools, convention centers and arenas, hospitality providers, government facilities, and places of worship through its sales and support teams, and dealers' network. Virco Mfg. Corporation was incorporated in 1950 and is headquartered in Torrance, California.