Critical Comparison: Levi Strauss & Co. (LEVI) versus Its Rivals

Levi Strauss & Co. (NYSE:LEVI) is one of 117 publicly-traded companies in the “Textiles, Apparel & Luxury Goods” industry, but how does it contrast to its peers? We will compare Levi Strauss & Co. to similar companies based on the strength of its valuation, profitability, institutional ownership, dividends, analyst recommendations, earnings and risk.

Profitability

This table compares Levi Strauss & Co. and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Levi Strauss & Co.	8.83%	27.40%	9.31%
Levi Strauss & Co. Competitors	-3.45%	12.79%	2.71%

Valuation & Earnings

This table compares Levi Strauss & Co. and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Levi Strauss & Co.	$6.28 billion	$578.10 million	15.26
Levi Strauss & Co. Competitors	$5.64 billion	$471.75 million	24.85

Levi Strauss & Co. has higher revenue and earnings than its peers. Levi Strauss & Co. 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.

Institutional and Insider Ownership

69.1% of Levi Strauss & Co. shares are owned by institutional investors. Comparatively, 54.1% of shares of all “Textiles, Apparel & Luxury Goods” companies are owned by institutional investors. 1.1% of Levi Strauss & Co. shares are owned by company insiders. Comparatively, 16.2% of shares of all “Textiles, Apparel & Luxury Goods” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Risk & Volatility

Levi Strauss & Co. has a beta of 1.3, indicating that its stock price is 30% more volatile than the S&P 500. Comparatively, Levi Strauss & Co.’s peers have a beta of 0.92, indicating that their average stock price is 8% less volatile than the S&P 500.

Dividends

Levi Strauss & Co. pays an annual dividend of $0.64 per share and has a dividend yield of 2.8%. Levi Strauss & Co. pays out 42.7% of its earnings in the form of a dividend. As a group, “Textiles, Apparel & Luxury Goods” companies pay a dividend yield of 3.5% and pay out 23.0% of their earnings in the form of a dividend. Levi Strauss & Co. has raised its dividend for 4 consecutive years. Levi Strauss & Co. lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Levi Strauss & Co. and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Levi Strauss & Co.	0	3	10	1	2.86
Levi Strauss & Co. Competitors	1651	7650	10072	364	2.46

Levi Strauss & Co. presently has a consensus target price of $26.92, suggesting a potential upside of 17.60%. As a group, “Textiles, Apparel & Luxury Goods” companies have a potential upside of 13.50%. Given Levi Strauss & Co.’s stronger consensus rating and higher probable upside, research analysts clearly believe Levi Strauss & Co. is more favorable than its peers.

Summary

Levi Strauss & Co. beats its peers on 11 of the 15 factors compared.

Levi Strauss & Co. Company Profile

Levi Strauss & Co. engages in the design, marketing, and sale of apparel products. The company offers jeans, casual and dress pants, tops, shorts, skirts, jackets, footwear, and related accessories. It operates through the following geographical segments: Americas, Europe, and Asia. The company was founded by Levi Strauss in 1853 and is headquartered in San Francisco, CA.