Monro Muffler Brake (MNRO) vs. Its Rivals Critical Survey

Monro Muffler Brake (NASDAQ:MNRO) is one of 285 publicly-traded companies in the “Specialty Retail” industry, but how does it contrast to its peers? We will compare Monro Muffler Brake to similar companies based on the strength of its dividends, analyst recommendations, risk, profitability, institutional ownership, earnings and valuation.

Profitability

This table compares Monro Muffler Brake and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Monro Muffler Brake	0.07%	-0.35%	-0.13%
Monro Muffler Brake Competitors	-3.69%	-13.97%	3.17%

Insider and Institutional Ownership

51.6% of shares of all “Specialty Retail” companies are held by institutional investors. 5.7% of Monro Muffler Brake shares are held by company insiders. Comparatively, 20.5% of shares of all “Specialty Retail” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Monro Muffler Brake and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Monro Muffler Brake	$1.16 billion	$2.17 million	-1,131.00
Monro Muffler Brake Competitors	$7.13 billion	$386.47 million	33.12

Monro Muffler Brake’s peers have higher revenue and earnings than Monro Muffler Brake. Monro Muffler Brake is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

Monro Muffler Brake has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500. Comparatively, Monro Muffler Brake’s peers have a beta of 1.92, meaning that their average stock price is 92% more volatile than the S&P 500.

Dividends

Monro Muffler Brake pays an annual dividend of $1.12 per share and has a dividend yield of 9.9%. Monro Muffler Brake pays out -11,200.0% of its earnings in the form of a dividend. As a group, “Specialty Retail” companies pay a dividend yield of 2.0% and pay out 35.6% of their earnings in the form of a dividend. Monro Muffler Brake is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of recent ratings for Monro Muffler Brake and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Monro Muffler Brake	1	2	2	0	2.20
Monro Muffler Brake Competitors	3667	15581	21610	590	2.46

Monro Muffler Brake currently has a consensus target price of $23.00, indicating a potential upside of 103.36%. As a group, “Specialty Retail” companies have a potential upside of 4.92%. Given Monro Muffler Brake’s higher probable upside, equities analysts clearly believe Monro Muffler Brake is more favorable than its peers.

Summary

Monro Muffler Brake peers beat Monro Muffler Brake on 10 of the 15 factors compared.

About Monro Muffler Brake

Monro, Inc. provides automotive undercar repair, and tire sales and services in the United States. It offers replacement tires and tire related services, automotive undercar repair services, and routine maintenance services primarily to passenger cars, light trucks, and vans. The company also provides other products and services for brakes; mufflers and exhaust systems; and steering, drive train, suspension, and wheel alignment. In addition, it operates stores under the brand names of Monro Auto Service and Tire Centers, Tire Choice Auto Service Centers, Mr. Tire Auto Service Centers, Car-X Tire & Auto, Tire Warehouse Tires for Less, Ken Towery's Tire & Auto Care, Mountain View Tire & Auto Service, and Tire Barn Warehouse. The company was founded in 1957 and is headquartered in Rochester, New York.