Winmark (NASDAQ: WINA) is one of 23 public companies in the “Other Specialty Retailers” industry, but how does it contrast to its competitors? We will compare Winmark to similar businesses based on the strength of its dividends, analyst recommendations, risk, profitability, earnings, institutional ownership and valuation.

Valuation and Earnings

This table compares Winmark and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Winmark $66.58 million $22.21 million 24.24
Winmark Competitors $2.19 billion $106.99 million 172.54

Winmark’s competitors have higher revenue and earnings than Winmark. Winmark 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.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Winmark and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Winmark 0 0 0 0 N/A
Winmark Competitors 396 1039 1116 43 2.31

As a group, “Other Specialty Retailers” companies have a potential downside of 5.66%. Given Winmark’s competitors higher possible upside, analysts plainly believe Winmark has less favorable growth aspects than its competitors.

Dividends

Winmark pays an annual dividend of $0.44 per share and has a dividend yield of 0.3%. Winmark pays out 8.4% of its earnings in the form of a dividend. As a group, “Other Specialty Retailers” companies pay a dividend yield of 1.0% and pay out 45.5% of their earnings in the form of a dividend.

Profitability

This table compares Winmark and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Winmark 33.29% -205.65% 48.53%
Winmark Competitors 0.47% -9.52% 6.01%

Institutional and Insider Ownership

49.4% of Winmark shares are owned by institutional investors. Comparatively, 62.2% of shares of all “Other Specialty Retailers” companies are owned by institutional investors. 37.5% of Winmark shares are owned by company insiders. Comparatively, 23.5% of shares of all “Other Specialty Retailers” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Winmark has a beta of 0.4, indicating that its share price is 60% less volatile than the S&P 500. Comparatively, Winmark’s competitors have a beta of 0.86, indicating that their average share price is 14% less volatile than the S&P 500.

Summary

Winmark competitors beat Winmark on 8 of the 12 factors compared.

About Winmark

Winmark Corporation is a franchisor of five retail store concepts that buy, sell and trade gently used merchandise. The Company operates through two business segments: franchising and leasing. The franchising segment franchises value-oriented retail store concepts that buy, sell, trade and consign merchandise. The leasing segment includes Winmark Capital Corporation, its middle-market equipment leasing business and Wirth Business Credit, Inc., its small-ticket financing business. As of December 31, 2016, the Company had 1,186 franchised stores across the United States and Canada. The Company operates a middle-market equipment leasing business through its subsidiary, Winmark Capital Corporation. Its middle-market leasing business serves large and medium-sized businesses and focuses on technology-based assets. Additionally, the Company operates a small-ticket financing business through its subsidiary, Wirth Business Credit, Inc.

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