Comparing Whirlpool (WHR) & Its Rivals

Whirlpool (NYSE: WHR) is one of 29 public companies in the “HM FURN/APPLI” industry, but how does it weigh in compared to its peers? We will compare Whirlpool to similar companies based on the strength of its dividends, earnings, analyst recommendations, risk, profitability, institutional ownership and valuation.

Institutional & Insider Ownership

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90.2% of Whirlpool shares are held by institutional investors. Comparatively, 62.8% of shares of all “HM FURN/APPLI” companies are held by institutional investors. 2.8% of Whirlpool shares are held by company insiders. Comparatively, 9.6% of shares of all “HM FURN/APPLI” companies are held 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.

Profitability

This table compares Whirlpool and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Whirlpool 1.65% 18.36% 5.08%
Whirlpool Competitors 3.70% 13.74% 6.06%

Risk and Volatility

Whirlpool has a beta of 1.84, indicating that its stock price is 84% more volatile than the S&P 500. Comparatively, Whirlpool’s peers have a beta of 1.32, indicating that their average stock price is 32% more volatile than the S&P 500.

Dividends

Whirlpool pays an annual dividend of $4.40 per share and has a dividend yield of 2.8%. Whirlpool pays out 96.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “HM FURN/APPLI” companies pay a dividend yield of 2.5% and pay out 48.1% of their earnings in the form of a dividend. Whirlpool has raised its dividend for 7 consecutive years.

Earnings and Valuation

This table compares Whirlpool and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Whirlpool $21.25 billion $350.00 million 34.49
Whirlpool Competitors $2.53 billion $129.18 million 36.08

Whirlpool has higher revenue and earnings than its peers. Whirlpool 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.

Analyst Ratings

This is a summary of current recommendations for Whirlpool and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Whirlpool 0 5 1 0 2.17
Whirlpool Competitors 90 349 492 36 2.49

Whirlpool currently has a consensus target price of $189.40, suggesting a potential upside of 20.44%. As a group, “HM FURN/APPLI” companies have a potential upside of 21.06%. Given Whirlpool’s peers stronger consensus rating and higher possible upside, analysts plainly believe Whirlpool has less favorable growth aspects than its peers.

Summary

Whirlpool peers beat Whirlpool on 9 of the 15 factors compared.

Whirlpool Company Profile

Whirlpool Corporation is a manufacturer and marketer of home appliances. The Company’s segments include North America; Europe, Middle East and Africa (EMEA); Latin America, and Asia. In North America, the Company markets and distributes home appliances and small domestic appliances under a range of brand names. In EMEA, it markets and distributes its home appliances primarily under the Whirlpool, Bauknecht, Ignis, Maytag, Laden, Indesit and Privileg brand names, and domestic appliances under the KitchenAid, Hotpoint and Hotpoint-Ariston brand names. In Latin America, it markets and distributes its home appliances and small domestic appliances primarily under the Consul, Brastemp, Whirlpool and KitchenAid brand names. The Company markets and distributes its products in Asia primarily under the Whirlpool, Maytag, KitchenAid, Amana, Bauknecht, Jenn-Air, Diqua and Royalstar brand names. It manufactures and markets a line of home appliances and related products.

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