Analyzing Zalando (ZLNDY) & The Competition

Zalando (OTCMKTS:ZLNDY) is one of 60 public companies in the “RETAIL – APP/SHOE” industry, but how does it contrast to its rivals? We will compare Zalando to similar companies based on the strength of its valuation, risk, analyst recommendations, dividends, profitability, earnings and institutional ownership.

Institutional and Insider Ownership

66.4% of shares of all “RETAIL – APP/SHOE” companies are owned by institutional investors. 19.7% of shares of all “RETAIL – APP/SHOE” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Zalando	$11.44 billion	$271.71 million	27.78
Zalando Competitors	$5.94 billion	$362.55 million	52.43

Zalando has higher revenue, but lower earnings than its rivals. Zalando 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.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Zalando and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zalando	0	0	1	1	3.50
Zalando Competitors	870	4915	5299	112	2.42

As a group, “RETAIL – APP/SHOE” companies have a potential upside of 27.96%. Given Zalando’s rivals higher possible upside, analysts clearly believe Zalando has less favorable growth aspects than its rivals.

Volatility and Risk

Zalando has a beta of 1.57, indicating that its stock price is 57% more volatile than the S&P 500. Comparatively, Zalando’s rivals have a beta of 1.30, indicating that their average stock price is 30% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Zalando	2.51%	10.45%	3.36%
Zalando Competitors	-6.37%	2.23%	1.43%

Summary

Zalando beats its rivals on 8 of the 13 factors compared.

Zalando Company Profile

Zalando SE operates an online platform for fashion and lifestyle products. The company operates through Fashion Store and Offprice segments. It provides shoes, apparel, accessories, and beauty products with free delivery and returns, as well as various payment options. The company also sells its products through Lounge by Zalando; and brick-and-mortar outlet stores. It operates in Germany, Austria, Switzerland, Belgium, Croatia, the Czech Republic, Denmark, Estonia, Finland, Hungary, France, Ireland, Italy, Latvia, Lithuania, Luxembourg, the Netherlands, Norway, Poland, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom. The company was founded in 2008 and is headquartered in Berlin, Germany.