Head-To-Head Review: Lowe’s Companies (LOW) versus Its Competitors

Lowe’s Companies (NYSE:LOW) is one of 285 public companies in the “Specialty Retail” industry, but how does it weigh in compared to its competitors? We will compare Lowe’s Companies to similar companies based on the strength of its dividends, valuation, earnings, analyst recommendations, risk, profitability and institutional ownership.

Risk and Volatility

Lowe’s Companies has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500. Comparatively, Lowe’s Companies’ competitors have a beta of 1.91, suggesting that their average stock price is 91% more volatile than the S&P 500.

Valuation and Earnings

This table compares Lowe’s Companies and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Lowe’s Companies	$90.43 billion	$6.65 billion	19.41
Lowe’s Companies Competitors	$7.30 billion	$386.51 million	30.93

Lowe’s Companies has higher revenue and earnings than its competitors. Lowe’s Companies is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Lowe’s Companies and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lowe’s Companies	7.34%	-75.67%	12.82%
Lowe’s Companies Competitors	-3.59%	-13.78%	3.24%

Analyst Recommendations

This is a summary of current ratings and target prices for Lowe’s Companies and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lowe’s Companies	2	12	22	1	2.59
Lowe’s Companies Competitors	3689	15626	21649	593	2.46

Lowe’s Companies presently has a consensus target price of $254.74, indicating a potential upside of 10.91%. As a group, “Specialty Retail” companies have a potential upside of 5.29%. Given Lowe’s Companies’ stronger consensus rating and higher probable upside, research analysts clearly believe Lowe’s Companies is more favorable than its competitors.

Dividends

Lowe’s Companies pays an annual dividend of $5.00 per share and has a dividend yield of 2.2%. Lowe’s Companies pays out 42.3% of its earnings in the form of a dividend. As a group, “Specialty Retail” companies pay a dividend yield of 2.0% and pay out 35.7% of their earnings in the form of a dividend. Lowe’s Companies has increased its dividend for 53 consecutive years.

Insider & Institutional Ownership

74.1% of Lowe’s Companies shares are owned by institutional investors. Comparatively, 51.9% of shares of all “Specialty Retail” companies are owned by institutional investors. 0.3% of Lowe’s Companies shares are owned by company insiders. Comparatively, 20.5% of shares of all “Specialty Retail” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Lowe’s Companies beats its competitors on 10 of the 15 factors compared.

About Lowe’s Companies

Lowe’s Companies, Inc. is a home improvement retailer serving homeowners, do-it-yourself customers and professional contractors. The company sells products for construction, maintenance, repair and renovation through its retail stores and online channels. Its offerings include appliances, tools, hardware, lumber and building materials, paint, plumbing and electrical supplies, and products for lawn and garden. Lowe’s also provides services such as installation and other project support. Founded in 1921 in North Wilkesboro, North Carolina, Lowe’s has grown into a major retailer operating across the United States.