L Brands (NYSE: LB) is one of 37 public companies in the “Apparel & Accessories Retailers” industry, but how does it compare to its rivals? We will compare L Brands to similar businesses based on the strength of its risk, valuation, earnings, profitability, dividends, analyst recommendations and institutional ownership.

Insider and Institutional Ownership

79.5% of L Brands shares are held by institutional investors. Comparatively, 75.2% of shares of all “Apparel & Accessories Retailers” companies are held by institutional investors. 16.7% of L Brands shares are held by company insiders. Comparatively, 16.7% of shares of all “Apparel & Accessories Retailers” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares L Brands and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
L Brands 8.04% -103.18% 12.00%
L Brands Competitors 1.09% -2.00% 3.77%

Analyst Ratings

This is a summary of current ratings and target prices for L Brands and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
L Brands 4 16 10 0 2.20
L Brands Competitors 607 3139 2936 91 2.37

L Brands currently has a consensus price target of $46.82, indicating a potential upside of 18.09%. As a group, “Apparel & Accessories Retailers” companies have a potential upside of 6.98%. Given L Brands’ higher possible upside, research analysts clearly believe L Brands is more favorable than its rivals.

Valuation & Earnings

This table compares L Brands and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
L Brands $12.26 billion $2.34 billion 11.63
L Brands Competitors $3.36 billion $449.70 million 21.59

L Brands has higher revenue and earnings than its rivals. L Brands is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Volatility & Risk

L Brands has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500. Comparatively, L Brands’ rivals have a beta of 0.78, suggesting that their average stock price is 22% less volatile than the S&P 500.

Dividends

L Brands pays an annual dividend of $2.40 per share and has a dividend yield of 6.1%. L Brands pays out 70.4% of its earnings in the form of a dividend. As a group, “Apparel & Accessories Retailers” companies pay a dividend yield of 3.1% and pay out 55.5% of their earnings in the form of a dividend. L Brands has increased its dividend for 6 consecutive years.

Summary

L Brands rivals beat L Brands on 8 of the 15 factors compared.

L Brands Company Profile

L Brands, Inc. operates specialty retail business. The Company is focused on women’s intimate and other apparel, personal care, beauty and home fragrance categories. Its segments include Victoria’s Secret, Bath & Body Works, and Victoria’s Secret and Bath & Body Works International. It sells its merchandise through company-owned specialty retail stores in the United States, Canada, the United Kingdom and Greater China, which are mall-based; through Websites, and through international franchise, license and wholesale partners. It operates in the retail brands, which include Victoria’s Secret, PINK, Bath & Body Works and La Senza. La Senza is a specialty retailer of women’s intimate apparel. It sells its La Senza products at over 120 La Senza stores in Canada. Henri Bendel sells handbags, jewelry and other accessory products through New York and 28 other stores. Mast Global is a merchandise sourcing and production function serving the Company and its international partners.

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