The Michaels Companies (NASDAQ: MIK) is one of 21 publicly-traded companies in the “Other Specialty Retailers” industry, but how does it compare to its rivals? We will compare The Michaels Companies to similar businesses based on the strength of its analyst recommendations, profitability, earnings, institutional ownership, valuation, risk and dividends.

Insider and Institutional Ownership

98.4% of The Michaels Companies shares are owned by institutional investors. Comparatively, 61.9% of shares of all “Other Specialty Retailers” companies are owned by institutional investors. 1.5% of The Michaels Companies shares are owned by company insiders. Comparatively, 22.7% of shares of all “Other Specialty Retailers” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares The Michaels Companies and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The Michaels Companies 7.29% -22.53% 18.13%
The Michaels Companies Competitors 21.96% -15.12% 6.27%

Risk & Volatility

The Michaels Companies has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500. Comparatively, The Michaels Companies’ rivals have a beta of 1.23, suggesting that their average share price is 23% more volatile than the S&P 500.

Valuation & Earnings

This table compares The Michaels Companies and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
The Michaels Companies $5.21 billion $801.02 million 11.24
The Michaels Companies Competitors $3.37 billion $363.72 million 4.91

The Michaels Companies has higher revenue and earnings than its rivals. The Michaels Companies is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a summary of current ratings and price targets for The Michaels Companies and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The Michaels Companies 0 3 5 0 2.63
The Michaels Companies Competitors 385 1032 1086 48 2.31

The Michaels Companies presently has a consensus target price of $24.29, indicating a potential upside of 14.34%. As a group, “Other Specialty Retailers” companies have a potential downside of 11.64%. Given The Michaels Companies’ stronger consensus rating and higher probable upside, research analysts plainly believe The Michaels Companies is more favorable than its rivals.

Summary

The Michaels Companies beats its rivals on 8 of the 13 factors compared.

About The Michaels Companies

The Michaels Companies, Inc. (Michaels) is an arts and crafts specialty retailer in North America. The Company’s segments include Michaels-U.S., Michaels-Canada, Aaron Brothers, Pat Catan’s and Darice. As of January 28, 2017, the Company operated 1,223 Michaels retail stores in 49 states and Canada, with approximately 18,000 average square feet of selling space per store. It operated 109 Aaron Brothers stores in nine states, with approximately 5,500 average square feet of selling space and 35 Pat Catan’s stores in five states, with approximately 32,000 average square feet of selling space, as of January 28, 2017. The Company also operates an international wholesale business under the Darice brand name. The Company’s stores purchase custom frames, framing supplies and mats from its framing operation and subsidiary, Artistree, Inc. (Artistree), which consists of a manufacturing facility and four regional processing centers.

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