Critical Survey: Stein Mart (SMRT) & Its Competitors

Stein Mart (NASDAQ: SMRT) is one of 31 publicly-traded companies in the “Apparel & Accessories Retailers” industry, but how does it contrast to its peers? We will compare Stein Mart to similar businesses based on the strength of its valuation, analyst recommendations, institutional ownership, profitability, earnings, risk and dividends.

Insider & Institutional Ownership

26.5% of Stein Mart shares are owned by institutional investors. Comparatively, 74.3% of shares of all “Apparel & Accessories Retailers” companies are owned by institutional investors. 34.7% of Stein Mart shares are owned by company insiders. Comparatively, 16.4% of shares of all “Apparel & Accessories Retailers” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Stein Mart -2.18% -44.60% -5.30%
Stein Mart Competitors 2.23% 6.10% 6.61%

Risk and Volatility

Stein Mart has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500. Comparatively, Stein Mart’s peers have a beta of 0.79, suggesting that their average stock price is 21% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Stein Mart and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stein Mart 0 0 0 0 N/A
Stein Mart Competitors 522 3075 2959 86 2.39

As a group, “Apparel & Accessories Retailers” companies have a potential upside of 7.36%. Given Stein Mart’s peers higher probable upside, analysts plainly believe Stein Mart has less favorable growth aspects than its peers.

Dividends

Stein Mart pays an annual dividend of $0.15 per share and has a dividend yield of 13.6%. Stein Mart pays out -24.2% of its earnings in the form of a dividend. As a group, “Apparel & Accessories Retailers” companies pay a dividend yield of 2.7% and pay out 56.3% of their earnings in the form of a dividend. Stein Mart is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares Stein Mart and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Stein Mart $1.36 billion $400,000.00 -1.77
Stein Mart Competitors $3.99 billion $181.38 million 960.43

Stein Mart’s peers have higher revenue and earnings than Stein Mart. Stein Mart 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

Stein Mart peers beat Stein Mart on 8 of the 11 factors compared.

Stein Mart Company Profile

Stein Mart, Inc. is a national retailer offering the fashion merchandise, service and presentation of a department or specialty store. The Company offers apparel for women and men, as well as accessories, shoes and home fashions. The Company’s target customers are women over 45 years old. The Company operates approximately 280 stores in over 30 states and an Internet store. Its stores are located in the Northeast, Midwest, Southeast, Texas and the Southwest. It is concentrated in the Southeast and Texas where over 180 of its stores are located. The Company’s stores offer a range of services, such as merchandise locator service, a Preferred Customer program, co-branded and private label credit card programs, and electronic gift cards. The Company’s merchants purchase products from approximately 1,200 vendors. It leases all of its store locations, generally for approximately 10 years with options to extend the lease term for over two or five year periods.

Receive News & Ratings for Stein Mart Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Stein Mart Inc. and related companies with MarketBeat.com's FREE daily email newsletter.

Latest News

Leave a Reply