Analyzing Coastal Contacts (COA) and The Competition

Coastal Contacts (NASDAQ: COA) is one of 22 publicly-traded companies in the “Other Specialty Retailers” industry, but how does it compare to its peers? We will compare Coastal Contacts to similar companies based on the strength of its analyst recommendations, dividends, valuation, risk, earnings, institutional ownership and profitability.

Institutional and Insider Ownership

62.0% of shares of all “Other Specialty Retailers” companies are owned by institutional investors. 23.5% of shares of all “Other Specialty Retailers” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Coastal Contacts N/A N/A -23.52
Coastal Contacts Competitors $2.16 billion $108.20 million 68.37

Coastal Contacts’ peers have higher revenue and earnings than Coastal Contacts. Coastal Contacts 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 Recommendations

This is a breakdown of recent ratings and target prices for Coastal Contacts and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Coastal Contacts 0 0 0 0 N/A
Coastal Contacts Competitors 197 821 900 24 2.39

As a group, “Other Specialty Retailers” companies have a potential downside of 11.86%. Given Coastal Contacts’ peers higher possible upside, analysts clearly believe Coastal Contacts has less favorable growth aspects than its peers.

Profitability

This table compares Coastal Contacts and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Coastal Contacts N/A N/A N/A
Coastal Contacts Competitors -4.01% -15.84% 4.05%

Summary

Coastal Contacts peers beat Coastal Contacts on 6 of the 8 factors compared.

Coastal Contacts Company Profile

Coastal Contacts Inc. is an online retailer of eyewear serving markets in North America, Europe and Asia Pacific. The Company operates in two primary product segments: contact lenses and glasses. The Company has approximately nine stores in Canada and Sweden. It sells contact lenses manufactured by multinational companies, such as Vistakon (a division of Johnson and Johnson Vision Care Inc.), Alcon, Inc., Bausch & Lomb Inc. and Coopervision Inc. Its products are offered for sale by telephone, e9 mail, through its Websites, which include www.ClearlyContacts.ca, www.ClearlyContacts.com.au, www.ClearlyContacts.co.nz, www.LensWay.se, www.LensWay.fi, www.LensWay.nl, www.LensWay.no, www.LensWay.co.uk, and www.ContactSan.com or at one of its nine physical retail locations. In April 2014, the Company announced that Essilor International (Compagnie Generale d’Optique), S.A. (Essilor) has indirectly acquired the interest of Coastal.com.

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