Comparing Zalando (ZLNDY) and Its Rivals

Zalando (OTCMKTS:ZLNDY) 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 Zalando to similar businesses based on the strength of its valuation, profitability, institutional ownership, risk, earnings, analyst recommendations and dividends.

Insider & Institutional Ownership

66.4% of shares of all “RETAIL – APP/SHOE” companies are owned by institutional investors. 19.7% of shares of all “RETAIL – APP/SHOE” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Zalando and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zalando	2.51%	10.45%	3.36%
Zalando Competitors	-6.37%	2.23%	1.43%

Volatility and Risk

Zalando has a beta of 1.57, suggesting that its share price is 57% more volatile than the S&P 500. Comparatively, Zalando’s rivals have a beta of 1.30, suggesting that their average share price is 30% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Zalando and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zalando	0	0	1	1	3.50
Zalando Competitors	870	4914	5298	112	2.42

As a group, “RETAIL – APP/SHOE” companies have a potential upside of 25.46%. Given Zalando’s rivals higher possible upside, analysts clearly believe Zalando has less favorable growth aspects than its rivals.

Earnings & Valuation

This table compares Zalando and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Zalando	$11.44 billion	$271.71 million	27.09
Zalando Competitors	$5.94 billion	$362.55 million	51.80

Zalando has higher revenue, but lower earnings than its rivals. Zalando 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

Zalando beats its rivals on 8 of the 13 factors compared.

About Zalando

Zalando SE operates an online platform for fashion and lifestyle products. The company operates through Fashion Store and Offprice segments. It provides shoes, apparel, accessories, and beauty products with free delivery and returns, as well as various payment options. The company also sells its products through Lounge by Zalando; and brick-and-mortar outlet stores. It operates in Germany, Austria, Switzerland, Belgium, Croatia, the Czech Republic, Denmark, Estonia, Finland, Hungary, France, Ireland, Italy, Latvia, Lithuania, Luxembourg, the Netherlands, Norway, Poland, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom. The company was founded in 2008 and is headquartered in Berlin, Germany.