L Brands (NYSE: LB) is one of 37 public companies in the “Apparel & Accessories Retailers” industry, but how does it contrast to its peers? We will compare L Brands to related businesses based on the strength of its profitability, analyst recommendations, risk, earnings, institutional ownership, dividends and valuation.

Profitability

This table compares L Brands and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
L Brands 8.04% -103.18% 12.00%
L Brands Competitors 1.09% -2.00% 3.77%

Institutional and Insider Ownership

79.5% of L Brands shares are held by institutional investors. Comparatively, 75.2% of shares of all “Apparel & Accessories Retailers” companies are held by institutional investors. 16.7% of L Brands shares are held by company insiders. Comparatively, 16.7% of shares of all “Apparel & Accessories Retailers” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

L Brands has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500. Comparatively, L Brands’ peers have a beta of 0.78, meaning that their average share price is 22% less volatile than the S&P 500.

Dividends

L Brands pays an annual dividend of $2.40 per share and has a dividend yield of 6.1%. L Brands pays out 70.4% of its earnings in the form of a dividend. As a group, “Apparel & Accessories Retailers” companies pay a dividend yield of 3.1% and pay out 55.5% of their earnings in the form of a dividend. L Brands has raised its dividend for 6 consecutive years.

Earnings and Valuation

This table compares L Brands and its peers revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
L Brands $12.26 billion $2.34 billion 11.63
L Brands Competitors $3.36 billion $449.79 million 21.59

L Brands has higher revenue and earnings than its peers. L Brands 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.

Analyst Ratings

This is a breakdown of current ratings and price targets for L Brands and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
L Brands 4 16 10 0 2.20
L Brands Competitors 607 3139 2936 91 2.37

L Brands presently has a consensus price target of $46.82, indicating a potential upside of 18.09%. As a group, “Apparel & Accessories Retailers” companies have a potential upside of 6.98%. Given L Brands’ higher possible upside, analysts clearly believe L Brands is more favorable than its peers.

Summary

L Brands peers beat L Brands on 8 of the 15 factors compared.

L Brands Company Profile

L Brands, Inc. operates specialty retail business. The Company is focused on women’s intimate and other apparel, personal care, beauty and home fragrance categories. Its segments include Victoria’s Secret, Bath & Body Works, and Victoria’s Secret and Bath & Body Works International. It sells its merchandise through company-owned specialty retail stores in the United States, Canada, the United Kingdom and Greater China, which are mall-based; through Websites, and through international franchise, license and wholesale partners. It operates in the retail brands, which include Victoria’s Secret, PINK, Bath & Body Works and La Senza. La Senza is a specialty retailer of women’s intimate apparel. It sells its La Senza products at over 120 La Senza stores in Canada. Henri Bendel sells handbags, jewelry and other accessory products through New York and 28 other stores. Mast Global is a merchandise sourcing and production function serving the Company and its international partners.

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