Wayfair (W) vs. Its Peers Critical Survey

Wayfair (NYSE: W) is one of 20 public companies in the “Catalog & mail-order houses” industry, but how does it compare to its peers? We will compare Wayfair to similar companies based on the strength of its earnings, profitability, dividends, risk, analyst recommendations, institutional ownership and valuation.

Analyst Ratings

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This is a breakdown of recent recommendations for Wayfair and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wayfair 1 9 12 0 2.50
Wayfair Competitors 106 505 1900 49 2.74

Wayfair currently has a consensus price target of $85.90, indicating a potential upside of 24.28%. As a group, “Catalog & mail-order houses” companies have a potential upside of 2.53%. Given Wayfair’s higher possible upside, analysts clearly believe Wayfair is more favorable than its peers.

Risk & Volatility

Wayfair has a beta of 1.37, indicating that its stock price is 37% more volatile than the S&P 500. Comparatively, Wayfair’s peers have a beta of 1.72, indicating that their average stock price is 72% more volatile than the S&P 500.

Insider & Institutional Ownership

71.1% of Wayfair shares are owned by institutional investors. Comparatively, 51.5% of shares of all “Catalog & mail-order houses” companies are owned by institutional investors. 37.8% of Wayfair shares are owned by insiders. Comparatively, 34.4% of shares of all “Catalog & mail-order houses” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Wayfair -5.18% -31,507.11% -25.40%
Wayfair Competitors -0.91% -1,897.02% -2.41%

Valuation & Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Wayfair $4.72 billion -$244.61 million -24.69
Wayfair Competitors $13.26 billion $329.84 million 37.80

Wayfair’s peers have higher revenue and earnings than Wayfair. Wayfair 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.

Summary

Wayfair peers beat Wayfair on 10 of the 13 factors compared.

Wayfair Company Profile

Wayfair Inc. engages in the e-commerce business in the United States, Europe, and internationally. The company offers approximately 10 million products for the home sector under various brands. It offers a selection of furniture, décor, decorative accents, housewares, seasonal décor, and other home goods through its sites, such as Wayfair, Joss & Main, AllModern, DwellStudio, Perigold, and Birch Lane. Wayfair Inc. was founded in 2002 and is headquartered in Boston, Massachusetts.

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