Garmin (NASDAQ:GRMN – Get Rating) is one of 20 public companies in the “Search & navigation equipment” industry, but how does it contrast to its peers? We will compare Garmin to related companies based on the strength of its risk, institutional ownership, dividends, analyst recommendations, earnings, valuation and profitability.
Analyst Recommendations
This is a summary of current ratings for Garmin and its peers, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Garmin | 0 | 0 | 0 | 0 | N/A |
| Garmin Competitors | 75 | 530 | 607 | 20 | 2.46 |
As a group, “Search & navigation equipment” companies have a potential upside of 22.88%. Given Garmin’s peers higher possible upside, analysts clearly believe Garmin has less favorable growth aspects than its peers.
Profitability
This table compares Garmin and its peers’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Garmin | 20.03% | 16.41% | 12.86% |
| Garmin Competitors | -252.67% | -5.00% | -3.52% |
Insider and Institutional Ownership
63.3% of Garmin shares are owned by institutional investors. Comparatively, 60.4% of shares of all “Search & navigation equipment” companies are owned by institutional investors. 20.3% of Garmin shares are owned by company insiders. Comparatively, 11.1% of shares of all “Search & navigation equipment” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Garmin and its peers gross revenue, earnings per share and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Garmin | $4.86 billion | $973.59 million | 18.91 |
| Garmin Competitors | $5.52 billion | $661.74 million | 14.55 |
Garmin’s peers have higher revenue, but lower earnings than Garmin. Garmin is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
Risk & Volatility
Garmin has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500. Comparatively, Garmin’s peers have a beta of 0.93, meaning that their average stock price is 7% less volatile than the S&P 500.
Dividends
Garmin pays an annual dividend of $2.92 per share and has a dividend yield of 3.1%. 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 1.9% and pay out 37.2% of their earnings in the form of a dividend. Garmin has raised its dividend for 1 consecutive years.
Summary
Garmin beats its peers on 9 of the 12 factors compared.
Garmin Company Profile
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
Receive News & Ratings for Garmin Daily – Enter your email address below to receive a concise daily summary of the latest news and analysts’ ratings for Garmin and related companies with MarketBeat.com’s FREE daily email newsletter.