Head-To-Head Contrast: Hennes & Mauritz (HNNMY) vs. The Competition

Hennes & Mauritz (OTCMKTS:HNNMY) is one of 60 publicly-traded companies in the “RETAIL – APP/SHOE” industry, but how does it weigh in compared to its rivals? We will compare Hennes & Mauritz to similar businesses based on the strength of its institutional ownership, analyst recommendations, dividends, earnings, valuation, risk and profitability.

Volatility and Risk

Hennes & Mauritz has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500. Comparatively, Hennes & Mauritz’s rivals have a beta of 1.30, suggesting that their average share price is 30% more volatile than the S&P 500.

Profitability

This table compares Hennes & Mauritz and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hennes & Mauritz	4.68%	24.84%	6.11%
Hennes & Mauritz Competitors	-6.37%	2.23%	1.43%

Insider and Institutional Ownership

0.0% of Hennes & Mauritz shares are held by institutional investors. Comparatively, 67.3% of shares of all “RETAIL – APP/SHOE” companies are held by institutional investors. 19.1% of shares of all “RETAIL – APP/SHOE” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for Hennes & Mauritz and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hennes & Mauritz	1	3	2	0	2.17
Hennes & Mauritz Competitors	870	4915	5298	112	2.42

As a group, “RETAIL – APP/SHOE” companies have a potential upside of 28.22%. Given Hennes & Mauritz’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Hennes & Mauritz has less favorable growth aspects than its rivals.

Dividends

Hennes & Mauritz pays an annual dividend of $0.11 per share and has a dividend yield of 4.3%. Hennes & Mauritz pays out 78.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “RETAIL – APP/SHOE” companies pay a dividend yield of 2.7% and pay out 38.5% of their earnings in the form of a dividend.

Earnings & Valuation

This table compares Hennes & Mauritz and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Hennes & Mauritz	$22.18 billion	$1.11 billion	18.14
Hennes & Mauritz Competitors	$5.94 billion	$362.55 million	51.44

Hennes & Mauritz has higher revenue and earnings than its rivals. Hennes & Mauritz 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.

Summary

Hennes & Mauritz rivals beat Hennes & Mauritz on 9 of the 15 factors compared.

About Hennes & Mauritz

H & M Hennes & Mauritz AB (publ) provides clothing, accessories, footwear, cosmetics, home textiles, and homeware for women, men, and children worldwide. It offers sportswear, shoes, bags, beauty products, activewear, jeans, and ready-to-wear; and interior products, including bed linens, dinnerware, textiles, furniture, and lighting. The company provides its products under the H&M, H&M HOME, H&M Move, H&M Beauty, COS, Weekday, Monki, & Other Stories, ARKET, Afound, and Singular Society brand names. In addition, it operates Sellpy, a broad digital platform for second-hand fashion and other products; and Creator Studio, a global platform for merchandise design and production, as well as provides solutions to extend the useful life of unwanted garments through reuse and recycling under Looper Textile name. The company offers its products through online and physical stores. H & M Hennes & Mauritz AB (publ) was incorporated in 1943 and is headquartered in Stockholm, Sweden.