Five Below (FIVE) vs. Its Peers Critical Comparison

Five Below (NASDAQ:FIVE) is one of 285 publicly-traded companies in the “Specialty Retail” industry, but how does it compare to its competitors? We will compare Five Below to related businesses based on the strength of its risk, earnings, dividends, analyst recommendations, institutional ownership, valuation and profitability.

Valuation and Earnings

This table compares Five Below and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Five Below	$5.31 billion	$358.64 million	22.04
Five Below Competitors	$7.28 billion	$386.47 million	39.65

Five Below’s competitors have higher revenue and earnings than Five Below. Five Below 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.

Profitability

This table compares Five Below and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Five Below	11.65%	22.13%	9.86%
Five Below Competitors	-3.65%	-14.17%	3.17%

Volatility & Risk

Five Below has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, Five Below’s competitors have a beta of 1.76, indicating that their average stock price is 76% more volatile than the S&P 500.

Institutional & Insider Ownership

51.6% of shares of all “Specialty Retail” companies are owned by institutional investors. 1.0% of Five Below shares are owned by insiders. Comparatively, 20.5% of shares of all “Specialty Retail” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Five Below and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Five Below	0	12	19	0	2.61
Five Below Competitors	3655	15540	21575	576	2.46

Five Below presently has a consensus target price of $300.20, suggesting a potential upside of 22.28%. As a group, “Specialty Retail” companies have a potential upside of 9.08%. Given Five Below’s stronger consensus rating and higher possible upside, analysts plainly believe Five Below is more favorable than its competitors.

Summary

Five Below competitors beat Five Below on 7 of the 13 factors compared.

Five Below Company Profile

Five Below, Inc. operates as a specialty value retailer in the United States. The company offers range of accessories, which includes novelty socks, sunglasses, jewelry, scarves, gloves, hair accessories, athletic tops and bottoms, and t-shirts, as well as nail polish, lip gloss, fragrance, and branded cosmetics; and personalized living space products, such as lamps, posters, frames, fleece blankets, plush items, pillows, candles, incense, lighting, novelty décor, accent furniture, and related items, as well as provides storage options. It provides assortment of sports balls, team sports merchandise, and fitness accessories comprising hand weights, jump ropes, and gym balls; various games, such as board games, puzzles, collectibles, and toys, including remote control; and summer season sports, which includes pool, beach, and outdoor toys, as well as games and accessories. In addition, the company offers accessories for cell phones, tablets, audio, and computers, as well as cases, chargers, headphones, and other related items; and media products including books, video games, and DVDs. It also provides assortment of craft activity kits, and arts and crafts supplies, such as crayons, markers, and stickers; and school products comprising backpacks, fashion notebooks and journals, novelty pens and pencils, and locker accessories. Further, the company offers party products, which includes party goods, decorations, gag gifts, and greeting cards, as well as every day and special occasion merchandise; assortment of classic and novelty candy bars, movie-size box candy, seasonal-related candy, and gum and snack food products, as well as sells chilled drinks through coolers; and provides seasonally specific items used to celebrate and decorate for events. The company was formerly known as Cheap Holdings, Inc. and changed its name to Five Below, Inc. in August 2002. Five Below, Inc. was incorporated in 2002 and is headquartered in Philadelphia, Pennsylvania.