Analyzing Dover Saddlery (DOVR) and The Competition

Dover Saddlery (NASDAQ: DOVR) is one of 22 publicly-traded companies in the “Other Specialty Retailers” industry, but how does it weigh in compared to its peers? We will compare Dover Saddlery to similar companies based on the strength of its valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Profitability

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

Net Margins Return on Equity Return on Assets
Dover Saddlery -3.40% -17.52% -6.75%
Dover Saddlery Competitors -3.82% -15.39% 3.85%

Valuation and Earnings

This table compares Dover Saddlery and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Dover Saddlery N/A N/A 64.85
Dover Saddlery Competitors $2.16 billion $108.86 million 179.44

Dover Saddlery’s peers have higher revenue and earnings than Dover Saddlery. Dover Saddlery 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 breakdown of current recommendations for Dover Saddlery and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dover Saddlery 0 0 0 0 N/A
Dover Saddlery Competitors 351 970 1073 38 2.33

As a group, “Other Specialty Retailers” companies have a potential upside of 4.28%. Given Dover Saddlery’s peers higher probable upside, analysts clearly believe Dover Saddlery has less favorable growth aspects than its peers.

Insider and Institutional Ownership

59.1% of shares of all “Other Specialty Retailers” companies are owned by institutional investors. 24.6% of shares of all “Other Specialty Retailers” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Dover Saddlery has a beta of 0.36, indicating that its share price is 64% less volatile than the S&P 500. Comparatively, Dover Saddlery’s peers have a beta of 1.02, indicating that their average share price is 2% more volatile than the S&P 500.

Summary

Dover Saddlery peers beat Dover Saddlery on 7 of the 8 factors compared.

About Dover Saddlery

Dover Saddlery, Inc. is a retailer and omni-channel marketer of equestrian products in the United States. The Company sells its products through omni-channel, including direct and retail. The Company offers a range of products required to own, ride, train and compete with a horse. The Company’s equestrian product line includes a range of separate items such as saddles, tack, specialized apparel, footwear, horse clothing, horse health and stable products. As of December 31, 2013, the Company, through its subsidiaries, operates twenty-one retail stores under the Dover Saddlery brand and one retail store under the Smith Brothers brand. It maintains two catalogs. The Dover Saddlery catalog caters to the mid to high-end, English-style, equestrian products customer. The Smith Brothers catalog is aimed at the Western-style, equestrian products customer. The Company offers web-base marketing through its Websites www.doversaddlery.com and www.smithbrothers.com.

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