Contrasting Warby Parker (WRBY) & Its Competitors

Warby Parker (NYSE:WRBY) is one of 285 publicly-traded companies in the “Specialty Retail” industry, but how does it weigh in compared to its rivals? We will compare Warby Parker to similar businesses based on the strength of its valuation, profitability, institutional ownership, risk, earnings, analyst recommendations and dividends.

Insider & Institutional Ownership

93.2% of Warby Parker shares are owned by institutional investors. Comparatively, 51.6% of shares of all “Specialty Retail” companies are owned by institutional investors. 16.8% of Warby Parker 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 endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Warby Parker	$911.61 million	$1.64 million	349.39
Warby Parker Competitors	$7.28 billion	$386.47 million	24.73

Warby Parker’s rivals have higher revenue and earnings than Warby Parker. Warby Parker is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a breakdown of current ratings for Warby Parker and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Warby Parker	1	3	6	0	2.50
Warby Parker Competitors	3660	15558	21570	576	2.46

Warby Parker presently has a consensus price target of $30.00, indicating a potential upside of 22.66%. As a group, “Specialty Retail” companies have a potential upside of 10.72%. Given Warby Parker’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Warby Parker is more favorable than its rivals.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Warby Parker	0.85%	3.36%	1.72%
Warby Parker Competitors	-3.65%	-14.17%	3.17%

Volatility and Risk

Warby Parker has a beta of 1.89, suggesting that its share price is 89% more volatile than the S&P 500. Comparatively, Warby Parker’s rivals have a beta of 1.76, suggesting that their average share price is 76% more volatile than the S&P 500.

Summary

Warby Parker beats its rivals on 8 of the 13 factors compared.

About Warby Parker

Warby Parker Inc. provides eyewear products in the United States and Canada. The company offers eyeglasses, sunglasses, light-responsive lenses, blue-light-filtering lenses, non-prescription lenses, and contact lenses. It also provides accessories, such as cases, lenses kit with anti-fog spray, pouches, and anti-fog lens spray through its retail stores, website, and mobile apps. In addition, the company offers eye exams and vision tests. Warby Parker Inc. was incorporated in 2009 and is headquartered in New York, New York.