Zalando (ZLNDY) versus The Competition Financial Survey

Zalando (OTCMKTS:ZLNDY) is one of 60 public companies in the “RETAIL – APP/SHOE” industry, but how does it weigh in compared to its peers? We will compare Zalando to related businesses based on the strength of its profitability, analyst recommendations, institutional ownership, earnings, dividends, valuation and risk.

Profitability

This table compares Zalando and its peers’ 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	-6.38%	2.18%	1.42%

Insider & Institutional Ownership

66.4% of shares of all “RETAIL – APP/SHOE” companies are owned by institutional investors. 19.8% 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 company is poised for long-term growth.

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Zalando	$11.44 billion	$271.71 million	29.50
Zalando Competitors	$5.94 billion	$362.55 million	56.70

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

Zalando has a beta of 1.53, suggesting that its stock price is 53% more volatile than the S&P 500. Comparatively, Zalando’s peers have a beta of 1.27, suggesting that their average stock price is 27% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Zalando and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zalando	0	0	1	1	3.50
Zalando Competitors	872	4916	5301	112	2.42

As a group, “RETAIL – APP/SHOE” companies have a potential upside of 20.58%. Given Zalando’s peers higher possible upside, analysts plainly believe Zalando has less favorable growth aspects than its peers.

Summary

Zalando beats its peers 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.