The Michaels Companies (NASDAQ: MIK) is one of 21 public companies in the “Other Specialty Retailers” industry, but how does it compare to its competitors? We will compare The Michaels Companies to similar companies based on the strength of its earnings, profitability, risk, institutional ownership, analyst recommendations, valuation and dividends.

Insider & Institutional Ownership

98.4% of The Michaels Companies shares are owned by institutional investors. Comparatively, 61.9% of shares of all “Other Specialty Retailers” companies are owned by institutional investors. 1.5% of The Michaels Companies shares are owned by company insiders. Comparatively, 22.7% of shares of all “Other Specialty Retailers” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations for The Michaels Companies and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The Michaels Companies 0 3 5 0 2.63
The Michaels Companies Competitors 331 925 1054 38 2.34

The Michaels Companies currently has a consensus price target of $24.29, indicating a potential upside of 12.38%. As a group, “Other Specialty Retailers” companies have a potential downside of 13.38%. Given The Michaels Companies’ stronger consensus rating and higher possible upside, research analysts clearly believe The Michaels Companies is more favorable than its competitors.

Valuation & Earnings

This table compares The Michaels Companies and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
The Michaels Companies $5.21 billion $801.02 million 11.43
The Michaels Companies Competitors $3.37 billion $363.72 million 4.93

The Michaels Companies has higher revenue and earnings than its competitors. The Michaels Companies is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares The Michaels Companies and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The Michaels Companies 7.29% -22.53% 18.13%
The Michaels Companies Competitors 22.44% -15.48% 6.10%

Volatility and Risk

The Michaels Companies has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500. Comparatively, The Michaels Companies’ competitors have a beta of 1.24, suggesting that their average share price is 24% more volatile than the S&P 500.

Summary

The Michaels Companies beats its competitors on 8 of the 13 factors compared.

About The Michaels Companies

The Michaels Companies, Inc. (Michaels) is an arts and crafts specialty retailer in North America. The Company’s segments include Michaels-U.S., Michaels-Canada, Aaron Brothers, Pat Catan’s and Darice. As of January 28, 2017, the Company operated 1,223 Michaels retail stores in 49 states and Canada, with approximately 18,000 average square feet of selling space per store. It operated 109 Aaron Brothers stores in nine states, with approximately 5,500 average square feet of selling space and 35 Pat Catan’s stores in five states, with approximately 32,000 average square feet of selling space, as of January 28, 2017. The Company also operates an international wholesale business under the Darice brand name. The Company’s stores purchase custom frames, framing supplies and mats from its framing operation and subsidiary, Artistree, Inc. (Artistree), which consists of a manufacturing facility and four regional processing centers.

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