Critical Survey: Hennes & Mauritz (HNNMY) vs. Its Rivals

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

Dividends

Hennes & Mauritz pays an annual dividend of $0.11 per share and has a dividend yield of 4.0%. Hennes & Mauritz pays out 84.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “RETAIL – APP/SHOE” companies pay a dividend yield of 2.1% and pay out 26.7% of their earnings in the form of a dividend.

Profitability

This table compares Hennes & Mauritz and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hennes & Mauritz	4.35%	23.48%	5.70%
Hennes & Mauritz Competitors	-6.36%	2.21%	1.43%

Volatility & Risk

Hennes & Mauritz has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500. Comparatively, Hennes & Mauritz’s peers have a beta of 1.27, meaning that their average stock price is 27% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Hennes & Mauritz and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hennes & Mauritz	1	3	0	0	1.75
Hennes & Mauritz Competitors	874	4919	5310	112	2.42

As a group, “RETAIL – APP/SHOE” companies have a potential upside of 21.69%. Given Hennes & Mauritz’s peers stronger consensus rating and higher possible upside, analysts plainly believe Hennes & Mauritz has less favorable growth aspects than its peers.

Insider & Institutional Ownership

0.0% of Hennes & Mauritz shares are held by institutional investors. Comparatively, 66.4% of shares of all “RETAIL – APP/SHOE” companies are held by institutional investors. 19.8% of shares of all “RETAIL – APP/SHOE” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Hennes & Mauritz and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Hennes & Mauritz	$22.18 billion	$1.11 billion	21.22
Hennes & Mauritz Competitors	$5.93 billion	$365.27 million	54.75

Hennes & Mauritz has higher revenue and earnings than its peers. Hennes & Mauritz 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

Hennes & Mauritz peers beat Hennes & Mauritz on 9 of the 15 factors compared.

About Hennes & Mauritz

H & M Hennes & Mauritz AB (publ) provides clothing, accessories, footwear, cosmetics, home textiles, and homeware for women, men, and children worldwide. It offers sportswear, shoes, bags, beauty products, activewear, jeans, and ready-to-wear; and interior products, including bed linens, dinnerware, textiles, furniture, and lighting. The company provides its products under the H&M, H&M HOME, H&M Move, H&M Beauty, COS, Weekday, Monki, & Other Stories, ARKET, Afound, and Singular Society brand names. In addition, it operates Sellpy, a broad digital platform for second-hand fashion and other products; and Creator Studio, a global platform for merchandise design and production, as well as provides solutions to extend the useful life of unwanted garments through reuse and recycling under Looper Textile name. The company offers its products through online and physical stores. H & M Hennes & Mauritz AB (publ) was incorporated in 1943 and is headquartered in Stockholm, Sweden.