Critical Analysis: Calloway’s Nursery (CLWY) and Its Competitors

Volatility and Risk

Calloway’s Nursery has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500. Comparatively, Calloway’s Nursery’s peers have a beta of 1.15, meaning that their average stock price is 15% more volatile than the S&P 500.

Institutional and Insider Ownership

74.9% of shares of all “RETAIL – MISC/DIV” companies are owned by institutional investors. 36.4% of Calloway’s Nursery shares are owned by insiders. Comparatively, 7.0% of shares of all “RETAIL – MISC/DIV” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Calloway’s Nursery and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Calloway’s Nursery	$87.25 million	$5.75 million	9.76
Calloway’s Nursery Competitors	$13.56 billion	$412.55 million	13.80

Calloway’s Nursery’s peers have higher revenue and earnings than Calloway’s Nursery. Calloway’s Nursery 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 Calloway’s Nursery and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Calloway’s Nursery	N/A	N/A	N/A
Calloway’s Nursery Competitors	6.54%	5.29%	11.59%

Dividends

Calloway’s Nursery pays an annual dividend of $0.25 per share and has a dividend yield of 12.2%. Calloway’s Nursery pays out 119.0% 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 – MISC/DIV” companies pay a dividend yield of 1.5% and pay out 29.9% of their earnings in the form of a dividend.

Summary

Calloway’s Nursery peers beat Calloway’s Nursery on 9 of the 11 factors compared.

About Calloway’s Nursery

Calloway's Nursery, Inc. operates garden centers in the United States. The company offers birding, fertilizers, garden tools,insect and pest control; mosquito control solutions, pottery, soils and mulches; weed control and fungicide to gardeners. It also provides cornelius home decor and lawn décor products. In addition, the company provides landscape design services. The company operates 24 stores under the Calloway's Nursery name in Texas. Calloway's Nursery, Inc. was founded in 1986 and is based in Fort Worth, Texas.