Analyzing Sleep Number (SNBR) & The Competition

Sleep Number (NASDAQ:SNBR) is one of 150 public companies in the “Household Durables” industry, but how does it compare to its competitors? We will compare Sleep Number to similar companies based on the strength of its analyst recommendations, profitability, valuation, risk, earnings, dividends and institutional ownership.

Profitability

This table compares Sleep Number and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sleep Number	-12.98%	N/A	-16.48%
Sleep Number Competitors	-2.75%	-17.14%	1.17%

Institutional and Insider Ownership

85.7% of Sleep Number shares are held by institutional investors. Comparatively, 53.6% of shares of all “Household Durables” companies are held by institutional investors. 3.6% of Sleep Number shares are held by company insiders. Comparatively, 18.3% of shares of all “Household Durables” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Sleep Number and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Sleep Number	$1.34 billion	-$131.96 million	-0.02
Sleep Number Competitors	$5.27 billion	$310.98 million	9.59

Sleep Number’s competitors have higher revenue and earnings than Sleep Number. Sleep Number is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Sleep Number and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sleep Number	2	2	0	0	1.50
Sleep Number Competitors	1810	7433	8156	316	2.39

Sleep Number currently has a consensus target price of $3.50, indicating a potential upside of 2,700.00%. As a group, “Household Durables” companies have a potential upside of 38.55%. Given Sleep Number’s higher possible upside, analysts clearly believe Sleep Number is more favorable than its competitors.

Risk and Volatility

Sleep Number has a beta of 2.49, meaning that its share price is 149% more volatile than the S&P 500. Comparatively, Sleep Number’s competitors have a beta of 1.77, meaning that their average share price is 77% more volatile than the S&P 500.

Summary

Sleep Number competitors beat Sleep Number on 9 of the 13 factors compared.

About Sleep Number

Sleep Number Corporation, together with its subsidiaries, offers sleep solutions and services in the United States. The company designs, manufactures, markets, retails, and services beds, pillows, sheets, and other bedding products under the Sleep Number name. It also provides smart adjustable bases under the FlextFit brand, and smart beds under the Climate 360 name. The company sells its products directly to consumers through retail, online, phone, chat, and other. The company was formerly known as Select Comfort Corporation and changed its name to Sleep Number Corporation in November 2017. Sleep Number Corporation was incorporated in 1987 and is headquartered in Minneapolis, Minnesota.