Garmin (NASDAQ:GRMN – Get Rating) is one of 21 publicly-traded companies in the “Search & navigation equipment” industry, but how does it contrast to its competitors? We will compare Garmin to related businesses based on the strength of its dividends, earnings, profitability, valuation, analyst recommendations, institutional ownership and risk.
Analyst Recommendations
This is a summary of recent ratings and target prices for Garmin and its competitors, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Garmin | 0 | 0 | 0 | 0 | N/A |
| Garmin Competitors | 75 | 532 | 613 | 20 | 2.47 |
As a group, “Search & navigation equipment” companies have a potential upside of 18.31%. Given Garmin’s competitors higher probable upside, analysts clearly believe Garmin has less favorable growth aspects than its competitors.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Garmin | 20.03% | 16.41% | 12.86% |
| Garmin Competitors | -119.17% | -2.92% | -2.25% |
Institutional & Insider Ownership
63.3% of Garmin shares are held by institutional investors. Comparatively, 60.4% of shares of all “Search & navigation equipment” companies are held by institutional investors. 20.3% of Garmin shares are held by company insiders. Comparatively, 10.3% of shares of all “Search & navigation equipment” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Garmin and its competitors gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Garmin | $4.86 billion | $973.59 million | 19.45 |
| Garmin Competitors | $5.00 billion | $610.83 million | 14.56 |
Garmin’s competitors have higher revenue, but lower earnings than Garmin. Garmin is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
Risk and Volatility
Garmin has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, Garmin’s competitors have a beta of 0.86, indicating that their average stock price is 14% less volatile than the S&P 500.
Dividends
Garmin pays an annual dividend of $2.92 per share and has a dividend yield of 3.0%. Garmin pays out 57.9% of its earnings in the form of a dividend. As a group, “Search & navigation equipment” companies pay a dividend yield of 2.1% and pay out 42.3% of their earnings in the form of a dividend. Garmin has increased its dividend for 1 consecutive years.
Summary
Garmin beats its competitors on 9 of the 12 factors compared.
About Garmin
Garmin Ltd. is a holding company, which engages in the provision of navigation, communications and information devices, most of which are enabled by Global Positioning System (GPS) technology. It operates through the following segments: Marine, Outdoor, Fitness, Auto OEM, Consumer Auto, and Aviation. The Marine segment manufactures and offers recreational marine electronics such as cartography, Sounders, Radar, Autopilot Systems and Sailing. The Outdoor segment offers products designed for use in outdoor activities such as Outdoor Handhelds, Adventure Watches, Golf Devices, Dog Tracking & Training Device, Garmin Connect & Garmin Connect Mobile, and Connect IQ. The Fitness segment refers to the products designed for use in fitness and activity tracking such as Running & Multi-Sport Watches, Cycling Computers, Power Meters, Safety & Awareness, and Activity Tracking Devices. The Auto OEM and Consumer Auto segments offer products designed for use in the auto market such as Personal Navigation Devices, Original Equipment Manufacturer (OEM) Solutions, and Cameras. The Aviation segment provides solutions to aircraft manufacturers, existing aircraft owners and operators, as well as governm
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