Financial Contrast: Prada (PRDSY) versus Its Rivals

Prada (OTCMKTS:PRDSY) is one of 118 publicly-traded companies in the “Textiles, Apparel & Luxury Goods” industry, but how does it weigh in compared to its competitors? We will compare Prada to similar businesses based on the strength of its profitability, analyst recommendations, valuation, risk, institutional ownership, dividends and earnings.

Institutional and Insider Ownership

54.5% of shares of all “Textiles, Apparel & Luxury Goods” companies are owned by institutional investors. 16.3% of shares of all “Textiles, Apparel & Luxury Goods” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

Prada pays an annual dividend of $0.16 per share and has a dividend yield of 1.5%. Prada pays out 35.9% of its earnings in the form of a dividend. As a group, “Textiles, Apparel & Luxury Goods” companies pay a dividend yield of 3.2% and pay out 22.9% of their earnings in the form of a dividend. Prada lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Prada	N/A	N/A	N/A
Prada Competitors	-3.32%	13.14%	2.59%

Analyst Recommendations

This is a breakdown of current recommendations for Prada and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Prada	0	1	1	0	2.50
Prada Competitors	1587	7620	10200	342	2.47

As a group, “Textiles, Apparel & Luxury Goods” companies have a potential upside of 15.85%. Given Prada’s competitors higher probable upside, analysts plainly believe Prada has less favorable growth aspects than its competitors.

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Prada	N/A	N/A	23.64
Prada Competitors	$5.67 billion	$478.19 million	27.93

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

Summary

Prada competitors beat Prada on 11 of the 13 factors compared.

About Prada

Prada S.p.A. designs, produces, and distributes leather goods, footwear, and ready to wear products worldwide. The company offers its products under the Prada, Miu Miu, Church’s, and Car Shoe brands. It operates in food sector under the Marchesi 1824 brand, as well as sailing races business under Luna Rossa brand name; eyewear and fragrances sector under licensing agreements; and engages in the real estate business. The company sells its products through a network of owned and franchise operated stores, e-commerce channels, department stores, independent retailers, and e-tailers. The company was founded in 1913 and is headquartered in Milan, Italy. Prada S.p.A. operates as a subsidiary of Prada Holding S.p.A.