Analyzing Zalando (ZLNDY) & Its Competitors

Zalando (OTCMKTS:ZLNDY) is one of 60 public companies in the “RETAIL – APP/SHOE” industry, but how does it compare to its peers? We will compare Zalando to similar companies based on the strength of its profitability, analyst recommendations, valuation, risk, earnings, institutional ownership and dividends.

Earnings & Valuation

This table compares Zalando and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Zalando	$11.44 billion	$271.71 million	27.09
Zalando Competitors	$5.94 billion	$362.55 million	51.80

Zalando has higher revenue, but lower earnings than its peers. Zalando 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.

Risk & Volatility

Zalando has a beta of 1.57, meaning that its share price is 57% more volatile than the S&P 500. Comparatively, Zalando’s peers have a beta of 1.30, meaning that their average share price is 30% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Zalando	2.51%	10.45%	3.36%
Zalando Competitors	-6.37%	2.23%	1.43%

Institutional & Insider Ownership

66.4% of shares of all “RETAIL – APP/SHOE” companies are owned by institutional investors. 19.7% of shares of all “RETAIL – APP/SHOE” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Zalando and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zalando	0	0	1	1	3.50
Zalando Competitors	870	4914	5298	112	2.42

As a group, “RETAIL – APP/SHOE” companies have a potential upside of 25.46%. Given Zalando’s peers higher possible upside, analysts clearly believe Zalando has less favorable growth aspects than its peers.

Summary

Zalando beats its peers on 8 of the 13 factors compared.

About Zalando

Zalando SE operates an online platform for fashion and lifestyle products. The company operates through Fashion Store and Offprice segments. It provides shoes, apparel, accessories, and beauty products with free delivery and returns, as well as various payment options. The company also sells its products through Lounge by Zalando; and brick-and-mortar outlet stores. It operates in Germany, Austria, Switzerland, Belgium, Croatia, the Czech Republic, Denmark, Estonia, Finland, Hungary, France, Ireland, Italy, Latvia, Lithuania, Luxembourg, the Netherlands, Norway, Poland, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom. The company was founded in 2008 and is headquartered in Berlin, Germany.