Critical Analysis: Owlet (OWLT) and The Competition

Owlet (NYSE:OWLT) is one of 511 publicly-traded companies in the “Healthcare Equipment & Supplies” industry, but how does it weigh in compared to its competitors? We will compare Owlet to similar companies based on the strength of its earnings, analyst recommendations, profitability, institutional ownership, valuation, dividends and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Owlet	-8.61%	-601.24%	-15.96%
Owlet Competitors	-276.78%	-149.08%	-21.73%

Earnings and Valuation

This table compares Owlet and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Owlet	$114.41 million	-$39.68 million	-5.66
Owlet Competitors	$1.90 billion	$138.25 million	9.36

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

Volatility and Risk

Owlet has a beta of 2.17, indicating that its share price is 117% more volatile than the S&P 500. Comparatively, Owlet’s competitors have a beta of 2.57, indicating that their average share price is 157% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Owlet and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Owlet	1	1	3	0	2.40
Owlet Competitors	4270	10527	18284	825	2.46

Owlet presently has a consensus target price of $15.00, suggesting a potential upside of 253.52%. As a group, “Healthcare Equipment & Supplies” companies have a potential upside of 19.45%. Given Owlet’s higher possible upside, research analysts clearly believe Owlet is more favorable than its competitors.

Insider and Institutional Ownership

72.6% of Owlet shares are held by institutional investors. Comparatively, 40.5% of shares of all “Healthcare Equipment & Supplies” companies are held by institutional investors. 36.2% of Owlet shares are held by company insiders. Comparatively, 14.8% of shares of all “Healthcare Equipment & Supplies” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Owlet competitors beat Owlet on 7 of the 13 factors compared.

About Owlet

Owlet, Inc. provides digital parenting solutions in the United States and internationally. The company's platform focuses on giving real-time data and insights to parents. It offers Dream Sock, a wearable infant health monitor equipped with pulse oximetry technology to track vitals signs, such as pulse rate, oxygen, activity, and sleep patterns; BabySat which is intended for infants with heightened health risk; Owlet Cam, a monitoring device in smartphones that offers video and audio, predictive sleep insights, and cry detections; and accessories, including Owlet Sleeper, as well as Duo and Dream Duo that combines Smart Sock with the Owlet Cam. The company was founded in 2012 and is headquartered in Lehi, Utah.