Critical Survey: European Wax Center (EWCZ) & Its Peers

European Wax Center (NASDAQ:EWCZGet Rating) is one of 63 publicly-traded companies in the “Personal services” industry, but how does it compare to its rivals? We will compare European Wax Center to similar businesses based on the strength of its risk, valuation, institutional ownership, earnings, profitability, dividends and analyst recommendations.

Earnings and Valuation

This table compares European Wax Center and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
European Wax Center $178.68 million -$3.41 million 219.17
European Wax Center Competitors $686.58 million $58.98 million 23.70

European Wax Center’s rivals have higher revenue and earnings than European Wax Center. European Wax Center is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a breakdown of recent recommendations for European Wax Center and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
European Wax Center 0 2 6 0 2.75
European Wax Center Competitors 271 1023 1551 85 2.49

European Wax Center presently has a consensus target price of $31.29, indicating a potential upside of 18.96%. As a group, “Personal services” companies have a potential upside of 27.98%. Given European Wax Center’s rivals higher probable upside, analysts clearly believe European Wax Center has less favorable growth aspects than its rivals.

Insider & Institutional Ownership

69.4% of European Wax Center shares are owned by institutional investors. Comparatively, 55.9% of shares of all “Personal services” companies are owned by institutional investors. 6.2% of European Wax Center shares are owned by insiders. Comparatively, 21.7% of shares of all “Personal services” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares European Wax Center and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
European Wax Center 3.31% 9.60% 5.30%
European Wax Center Competitors -24.25% 340.80% -3.81%

European Wax Center Company Profile (Get Rating)

European Wax Center, Inc. operates as a holding company for EWC Ventures, LLC that franchises and operates out-of-home waxing services in the United States. The company sells facial and body waxing products to franchisees. It offers Brazilian, body, brow, facial hair, and fast waxing services, as well as services related to men; and laser hair removal, sugaring, and threading services, as well as in-home solutions, such as shaving, chemical-based creams, epilators, at-home laser hair removal, and at-home waxing. The company also provides pre- and post-service products, including ingrown hair serums, exfoliating gels, brow shapers, and skin treatments, as well as distributes retail products to its franchisees for sale in-centers and sells direct-to-consumer through website. As of December 25, 2021, it had a portfolio of centers operating in 853 locations, including 848 are franchised centers and five corporate-owned centers. European Wax Center, Inc. was founded in 2004 and is headquartered in Plano, Texas.

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