Cricut (CRCT) & Its Peers Financial Survey

Cricut (NASDAQ:CRCTGet Rating) is one of 38 publicly-traded companies in the “Special industry machinery, not elsewhere classified” industry, but how does it contrast to its rivals? We will compare Cricut to related businesses based on the strength of its profitability, risk, dividends, institutional ownership, analyst recommendations, earnings and valuation.

Insider & Institutional Ownership

14.8% of Cricut shares are owned by institutional investors. Comparatively, 59.5% of shares of all “Special industry machinery, not elsewhere classified” companies are owned by institutional investors. 15.5% of shares of all “Special industry machinery, not elsewhere classified” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Cricut and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cricut 2 3 0 0 1.60
Cricut Competitors 321 1101 1620 40 2.45

Cricut currently has a consensus target price of $17.20, suggesting a potential upside of 27.98%. As a group, “Special industry machinery, not elsewhere classified” companies have a potential upside of 62.55%. Given Cricut’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Cricut has less favorable growth aspects than its rivals.

Profitability

This table compares Cricut and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cricut 10.75% 22.66% 14.78%
Cricut Competitors -3.74% 0.33% 3.48%

Earnings and Valuation

This table compares Cricut and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Cricut $1.31 billion $140.47 million 21.00
Cricut Competitors $2.81 billion $426.17 million 19.77

Cricut’s rivals have higher revenue and earnings than Cricut. Cricut is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

Cricut rivals beat Cricut on 8 of the 12 factors compared.

Cricut Company Profile (Get Rating)

Cricut, Inc. designs and markets a creativity platform that enables users to turn ideas into professional-looking handmade goods. It operates in three segments: Connected Machines, Subscriptions, and Accessories and Materials. The company offers connected machines, design apps, and accessories and materials for users to create personalized birthday cards, mugs, T-shirts, and large-scale interior decorations. Its connected machines include Cricut Joy, Cricut Explore, and Cricut Maker to cut, write, score, and create decorative effects using various materials, such as paper, vinyl, leather, and others; and design apps comprise Design Space app and Cricut Joy-specific app. The company also provides Cricut Access and Cricut Access Premium subscription offerings, and in-app purchases; and a software that integrates its connected machines and design apps. In addition, it offers a range of accessories and materials, such as Cricut EasyPress, Cricut Mug Press, various hand tools, machine replacement tools and blades, and project materials. The company offers its products through its third-party brick-and-mortar and online retail partners; and its website cricut.com, as well as through a network of distributors. It operates in the United States, the United Kingdom, Ireland, Australia, New Zealand, and Western Europe, as well as the Middle East, Latin America, South Africa, and Asia. The company was formerly known as Provo Craft & Novelty, Inc. and changed its name to Cricut, Inc. in March 2018. The company was incorporated in 1969 and is headquartered in South Jordan, Utah.

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