Head-To-Head Analysis: Garmin (GRMN) vs. Its Rivals

Garmin (NYSE:GRMN) is one of 150 public companies in the “Household Durables” industry, but how does it contrast to its rivals? We will compare Garmin to related businesses based on the strength of its dividends, valuation, profitability, earnings, institutional ownership, analyst recommendations and risk.

Dividends

Garmin pays an annual dividend of $4.20 per share and has a dividend yield of 1.5%. Garmin pays out 40.3% of its earnings in the form of a dividend. As a group, “Household Durables” companies pay a dividend yield of 4.1% and pay out 31.7% of their earnings in the form of a dividend. Garmin has raised its dividend for 8 consecutive years. Garmin lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Earnings and Valuation

This table compares Garmin and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Garmin	$7.89 billion	$1.66 billion	27.42
Garmin Competitors	$5.33 billion	$313.99 million	9.23

Garmin has higher revenue and earnings than its rivals. Garmin 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Garmin	25.58%	21.94%	17.81%
Garmin Competitors	-2.55%	-17.06%	1.25%

Volatility and Risk

Garmin has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, Garmin’s rivals have a beta of 1.77, indicating that their average share price is 77% more volatile than the S&P 500.

Insider and Institutional Ownership

81.6% of Garmin shares are held by institutional investors. Comparatively, 53.6% of shares of all “Household Durables” companies are held by institutional investors. 14.8% of Garmin shares are held by company insiders. Comparatively, 18.1% of shares of all “Household Durables” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations for Garmin and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Garmin	1	5	3	1	2.40
Garmin Competitors	1815	7446	8167	316	2.39

Garmin presently has a consensus price target of $315.29, indicating a potential upside of 10.34%. As a group, “Household Durables” companies have a potential upside of 39.72%. Given Garmin’s rivals higher probable upside, analysts plainly believe Garmin has less favorable growth aspects than its rivals.

Summary

Garmin beats its rivals on 9 of the 15 factors compared.

About Garmin

Garmin Ltd. designs, develops, manufactures, markets, and distributes a range of wireless devices worldwide. Its Fitness segment offers running and multi-sport watches; cycling products; smartwatch devices; scales and monitors; and fitness accessories. This segment also provides Garmin Connect and Garmin Connect Mobile, which are web and mobile platforms where users can track and analyze their fitness, activities and workouts, and wellness data; and Connect IQ, an application development platform. The company's Outdoor segment offers adventure watches, outdoor handhelds and satellite communicators, golf devices, consumer automotive devices, and dog devices, as well as InReach and Gramin response communication device. Its Aviation segment designs, manufactures, and markets various aircraft avionics solutions, including integrated flight decks, electronic flight displays and instrumentation, navigation and communication products, automatic flight control systems and safety-enhancing technologies, audio control systems, engine indication systems, traffic awareness and avoidance solutions, ADS-B and transponders, weather information and avoidance solutions, datalink and connectivity solutions, and various services. The company's Marine segment provides chartplotters and multi-function displays, cartography products, fishfinders, sonar products, autopilot systems, radars, compliant instrument displays and sensors, VHF communication radios, handhelds and wearable devices, sailing products, audio products and accessories, digital switching products, and trolling motors. Its Auto segment offers embedded domain controllers and infotainment units; and software, map database, cameras, wearables, and automotive solutions. The company sells its products through independent retailers, dealers, distributors, installation and repair shops, and original equipment manufacturers, as well as online webshop. Garmin Ltd. was founded in 1989 and is based in Schaffhausen, Switzerland.