Analyzing European Wax Center (EWCZ) & Its Rivals

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

Profitability

This table compares European Wax Center and its competitors’ 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%

Earnings & Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
European Wax Center $178.68 million -$3.41 million 215.42
European Wax Center Competitors $686.58 million $58.98 million 23.88

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for European Wax Center and its competitors, as reported by MarketBeat.com.

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 1025 1551 85 2.49

European Wax Center currently has a consensus price target of $31.29, indicating a potential upside of 21.03%. As a group, “Personal services” companies have a potential upside of 27.11%. Given European Wax Center’s competitors higher possible upside, analysts clearly believe European Wax Center has less favorable growth aspects than its competitors.

Institutional & Insider 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 company insiders. Comparatively, 21.7% of shares of all “Personal services” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

About European Wax Center (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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