Contrasting of Garmin Ltd. (GRMN) and Its Competitors

As Scientific & Technical Instruments company, Garmin Ltd. (NASDAQ:GRMN) is competing with its rivals based on the risk, analyst recommendations, profitability, dividends, earnings and valuation, institutional ownership.

Institutional & Insider Ownership

46.1% of Garmin Ltd.’s shares are owned by institutional investors. Comparatively, 70.94% of all Scientific & Technical Instruments’s companies shares are owned by institutional investors. 1.2% of Garmin Ltd. shares are owned by company insiders. Comparatively, 6.03% of all Scientific & Technical Instruments companies shares are owned by company insiders.

Profitability

On first table we have Garmin Ltd. and its rivals’ return on assets, return on equity and net margins.

Net Margins Return on Equity Return on Assets
Garmin Ltd. 20.72% 17.50% 13.70%
Industry Average 12.59% 12.29% 7.51%

Earnings & Valuation

The following data compares Garmin Ltd. and its rivals’ valuation, gross revenue and net income.

Net Income Gross Revenue Price/Earnings Ratio
Garmin Ltd. 694.08M 3.35B 23.17
Industry Average 83.75M 664.96M 42.67

Garmin Ltd. has lower P/E Ratio, but higher revenue than its peers. With currently lower price-to-earnings ratio Garmin Ltd. is more affordable than its rivals.

Analyst Ratings

Table 3 provides summary of current ratings for Garmin Ltd. and its rivals.

Sell Ratings Hold Ratings Buy Ratings Rating Score
Garmin Ltd. 1 2 0 2.67
Industry Average 1.00 1.31 1.96 2.76

Garmin Ltd. currently has an average target price of $75.75, suggesting a potential downside of -14.84%. As a group, Scientific & Technical Instruments companies have a potential upside of 37.27%. Given Garmin Ltd.’s stronger consensus rating and higher probable upside, analysts plainly believe Garmin Ltd. is more favorable than its rivals.

Performance

In this table we provide the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of Garmin Ltd. and its rivals.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
Garmin Ltd. 1.42% 22.49% 27.66% 24.42% 43.97% 33.83%
Industry Average 5.26% 12.07% 16.65% 17.57% 29.87% 26.00%

For the past year Garmin Ltd.’s stock price has bigger growth than the average for its rivals.

Liquidity

The Current Ratio and a Quick Ratio of Garmin Ltd. are 2.9 and 2.3. Competitively, Garmin Ltd.’s peers have 3.66 and 2.67 for Current and Quick Ratio. Garmin Ltd.’s competitors have better ability to pay short and long-term obligations than Garmin Ltd.

Volatility & Risk

Garmin Ltd. has a beta of 0.96 and its 4.00% less volatile than Standard & Poor’s 500. In other hand, Garmin Ltd.’s rivals have beta of 1.16 which is 15.97% more volatile than Standard & Poor’s 500.

Dividends

$2.12 per share with a dividend yield of 2.38% is the annual dividend that Garmin Ltd. pays. On the other side Garmin Ltd.’s rivals have dividend yield of 1.69%.

Summary

Garmin Ltd.’s competitors beat Garmin Ltd. on 6 of the 7 factors.

Garmin Ltd., together with its subsidiaries, designs, develops, manufactures, markets, and distributes a range of navigation, communication, and information devices worldwide. It operates through five segments: Auto, Aviation, Marine, Outdoor, and Fitness. The Auto segment offers personal navigation devices; infotainment solutions; and action cameras, as well as mobile applications under the Garmin and NAVIGON names. The Aviation segment provides navigation, communication, flight control, hazard avoidance, weather radar, radar altimeter, datalink weather, in-cockpit and cloud connectivity, automated logbook, voice and touch control, and other products and services; wearables, portables, and apps; and traffic collision avoidance, and terrain awareness and warning systems. It also offers controller-pilot data link, a suite of automatic dependent surveillance broadcast solutions. The Marine segment provides chartplotters and multi-function displays, fish finders, sounders, autopilot systems, radars, compliant instrument displays, VHF communication radios, handhelds and wrist-worn devices, sailing products, and entertainment products. The Outdoor segment offers outdoor handhelds, wearable devices, golf devices, and dog tracking and training/pet obedience devices. The Fitness segment provides running/multi-sport watches, cycling computers, cycling power meters, cycling safety and awareness products, and activity tracking devices, as well as Garmin Connect and Garmin Connect Mobile, which are Web and mobile platforms for users to track and analyze their fitness and wellness data. The company sells its global positioning system receivers and accessories to retail outlets; and aviation products to aviation dealers and aircraft manufacturers through a network of independent dealers and distributors. Garmin Ltd. was founded in 1990 and is based in Schaffhausen, Switzerland.