Head-To-Head Analysis: Upbound Group (UPBD) and Its Peers

Upbound Group (NASDAQ:UPBD – Get Rating) is one of 17 publicly-traded companies in the “Equipment rental & leasing, not elsewhere classified” industry, but how does it compare to its rivals? We will compare Upbound Group to similar companies based on the strength of its analyst recommendations, profitability, risk, earnings, valuation, dividends and institutional ownership.

Institutional and Insider Ownership

86.1% of Upbound Group shares are held by institutional investors. Comparatively, 68.3% of shares of all “Equipment rental & leasing, not elsewhere classified” companies are held by institutional investors. 11.0% of Upbound Group shares are held by insiders. Comparatively, 11.8% of shares of all “Equipment rental & leasing, not elsewhere classified” companies are held 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.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Upbound Group and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Upbound Group	0	1	0	0	2.00
Upbound Group Competitors	83	417	843	47	2.61

As a group, “Equipment rental & leasing, not elsewhere classified” companies have a potential upside of 17.14%. Given Upbound Group’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Upbound Group has less favorable growth aspects than its rivals.

Dividends

Upbound Group pays an annual dividend of $1.36 per share and has a dividend yield of 5.5%. Upbound Group pays out 680.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Equipment rental & leasing, not elsewhere classified” companies pay a dividend yield of 1.5% and pay out 19.6% of their earnings in the form of a dividend.

Profitability

This table compares Upbound Group and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Upbound Group	0.29%	40.50%	7.88%
Upbound Group Competitors	63.56%	-29.67%	-1.50%

Risk and Volatility

Upbound Group has a beta of 1.75, suggesting that its share price is 75% more volatile than the S&P 500. Comparatively, Upbound Group’s rivals have a beta of 1.41, suggesting that their average share price is 41% more volatile than the S&P 500.

Valuation & Earnings

This table compares Upbound Group and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Upbound Group	$4.25 billion	$12.36 million	123.45
Upbound Group Competitors	$2.47 billion	$148.63 million	61.67

Upbound Group has higher revenue, but lower earnings than its rivals. Upbound Group 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.

Summary

Upbound Group rivals beat Upbound Group on 8 of the 15 factors compared.

Upbound Group Company Profile

(Get Rating)

Upbound Group, Inc. engages in the provision of furniture, electronics, appliances, computers, and smartphones through flexible rental purchase agreements. It operates through the following segments: Rent-A-Center Business, Preferred Lease, Mexico, and Franchising. The Rent-A-Center Business segment consists of company-owned rent-to-own stores in the United States and Puerto Rico. The Preferred Lease segment offers an on-site rent-to-own option at a third-party retailer’s location. The Mexico segment consists of its company-owned rent-to-own stores in Mexico. The Franchising segment sells rental merchandise to its franchisees. The company was founded by Mark E. Speese on September 16, 1986 and is headquartered in Plano, TX.