Financial Contrast: Garmin (GRMN) & Its Rivals

Garmin (NYSE:GRMN) is one of 150 publicly-traded companies in the “Household Durables” industry, but how does it contrast to its competitors? We will compare Garmin to related businesses based on the strength of its institutional ownership, analyst recommendations, dividends, profitability, valuation, earnings and risk.

Insider & Institutional Ownership

81.6% of Garmin shares are owned by institutional investors. Comparatively, 53.6% of shares of all “Household Durables” companies are owned by institutional investors. 14.8% of Garmin shares are owned by insiders. Comparatively, 18.2% of shares of all “Household Durables” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Garmin	25.58%	21.94%	17.81%
Garmin Competitors	-2.55%	-17.08%	1.25%

Risk and Volatility

Garmin has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, Garmin’s competitors have a beta of 1.77, indicating that their average share price is 77% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Garmin and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Garmin	1	5	3	1	2.40
Garmin Competitors	1819	7453	8180	317	2.39

Garmin presently has a consensus target price of $315.29, suggesting a potential upside of 10.02%. As a group, “Household Durables” companies have a potential upside of 45.92%. Given Garmin’s competitors higher probable upside, analysts clearly believe Garmin has less favorable growth aspects than its competitors.

Dividends

Garmin pays an annual dividend of $4.20 per share and has a dividend yield of 1.5%. Garmin pays out 40.3% of its earnings in the form of a dividend. As a group, “Household Durables” companies pay a dividend yield of 4.1% and pay out 31.7% of their earnings in the form of a dividend. Garmin has increased its dividend for 8 consecutive years. Garmin lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Earnings & Valuation

This table compares Garmin and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Garmin	$7.25 billion	$1.66 billion	27.50
Garmin Competitors	$5.27 billion	$310.98 million	8.81

Garmin has higher revenue and earnings than its competitors. Garmin 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

Garmin beats its competitors on 9 of the 15 factors compared.

Garmin Company Profile

Garmin Ltd. develops, manufactures and markets navigation, communication and information devices and applications. Its products include GPS-enabled watches and fitness trackers, handheld outdoor navigation devices, marine electronics, aviation systems and automotive navigation technology. Founded in 1989 by Gary Burrell and Min Kao, Garmin serves consumers and businesses around the world. Its products are used in activities ranging from fitness and outdoor recreation to boating, aviation and transportation.