Sleep Number (SNBR) vs. Its Competitors Critical Review

Sleep Number (NASDAQ:SNBR – Get Free Report) is one of 150 public companies in the “Household Durables” industry, but how does it compare to its peers? We will compare Sleep Number to related businesses based on the strength of its risk, valuation, dividends, analyst recommendations, institutional ownership, profitability and earnings.

Earnings & Valuation

This table compares Sleep Number and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Sleep Number $1.34 billion -$131.96 million -0.02
Sleep Number Competitors $5.33 billion $313.99 million 9.18

Sleep Number’s peers have higher revenue and earnings than Sleep Number. Sleep Number 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.

Insider & Institutional Ownership

85.7% of Sleep Number shares are owned by institutional investors. Comparatively, 53.6% of shares of all “Household Durables” companies are owned by institutional investors. 3.6% of Sleep Number shares are owned by insiders. Comparatively, 18.3% of shares of all “Household Durables” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Sleep Number has a beta of 2.49, indicating that its stock price is 149% more volatile than the S&P 500. Comparatively, Sleep Number’s peers have a beta of 1.77, indicating that their average stock price is 77% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Sleep Number and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sleep Number 2 2 0 0 1.50
Sleep Number Competitors 1804 7418 8150 316 2.39

Sleep Number currently has a consensus target price of $3.50, indicating a potential upside of 2,700.00%. As a group, “Household Durables” companies have a potential upside of 44.02%. Given Sleep Number’s higher probable upside, equities analysts plainly believe Sleep Number is more favorable than its peers.

Profitability

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

Net Margins Return on Equity Return on Assets
Sleep Number -12.98% N/A -16.48%
Sleep Number Competitors -2.75% -17.14% 1.17%

Summary

Sleep Number peers beat Sleep Number on 9 of the 13 factors compared.

Sleep Number Company Profile

(Get Free Report)

Sleep Number Corporation, together with its subsidiaries, offers sleep solutions and services in the United States. The company designs, manufactures, markets, retails, and services beds, pillows, sheets, and other bedding products under the Sleep Number name. It also provides smart adjustable bases under the FlextFit brand, and smart beds under the Climate 360 name. The company sells its products directly to consumers through retail, online, phone, chat, and other. The company was formerly known as Select Comfort Corporation and changed its name to Sleep Number Corporation in November 2017. Sleep Number Corporation was incorporated in 1987 and is headquartered in Minneapolis, Minnesota.

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