Reviewing Genesco (GCO) and The Competition

Genesco (NYSE: GCO) is one of 37 publicly-traded companies in the “Apparel & Accessories Retailers” industry, but how does it compare to its rivals? We will compare Genesco to related companies based on the strength of its valuation, risk, earnings, profitability, analyst recommendations, dividends and institutional ownership.

Insider and Institutional Ownership

94.4% of Genesco shares are owned by institutional investors. Comparatively, 75.2% of shares of all “Apparel & Accessories Retailers” companies are owned by institutional investors. 3.3% of Genesco shares are owned by insiders. Comparatively, 16.5% of shares of all “Apparel & Accessories Retailers” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Genesco has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500. Comparatively, Genesco’s rivals have a beta of 0.78, indicating that their average stock price is 22% less volatile than the S&P 500.

Valuation and Earnings

This table compares Genesco and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Genesco $2.85 billion $184.95 million 6.66
Genesco Competitors $3.36 billion $448.71 million 20.92

Genesco’s rivals have higher revenue and earnings than Genesco. Genesco 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Genesco 2.43% 7.36% 4.34%
Genesco Competitors 0.80% -2.79% 3.26%

Analyst Ratings

This is a breakdown of current ratings and price targets for Genesco and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Genesco 0 4 3 0 2.43
Genesco Competitors 511 2961 2888 84 2.39

Genesco currently has a consensus target price of $32.67, suggesting a potential upside of 39.01%. As a group, “Apparel & Accessories Retailers” companies have a potential upside of 5.25%. Given Genesco’s stronger consensus rating and higher possible upside, analysts clearly believe Genesco is more favorable than its rivals.

Summary

Genesco beats its rivals on 7 of the 13 factors compared.

Genesco Company Profile

Genesco Inc. is a retailer and wholesaler of footwear, apparel and accessories. The Company operates in five segments: Journeys Group, Schuh Group, Lids Sports Group, Johnston & Murphy Group and Licensed Brands. It relies on independent third-party manufacturers for production of its footwear products sold at wholesale. It sources footwear and accessory products from foreign manufacturers located in Bangladesh, Brazil, Cambodia, Canada, China, Dominican Republic, El Salvador, France, Germany, Hong Kong, India, Indonesia, Italy, Mexico, the Netherlands, Portugal, Peru, Romania, Taiwan and Vietnam. As of January 28, 2017, it operated 2,794 retail footwear, headwear and sports apparel and accessory stores and leased departments located primarily throughout the United States and in Puerto Rico, including 147 headwear and sports apparel and accessory stores and 87 footwear stores in Canada and 128 footwear stores in the United Kingdom, the Republic of Ireland and Germany.

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