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How Does Williams-Sonoma Compare to Its Peers?

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Nov. 20 2015, Updated 8:09 a.m. ET

Williams-Sonoma and its peers

In this article, we’ll compare Williams-Sonoma (WSM) with its peers. The PE (price-to-earnings) ratios of Williams-Sonoma, Bed Bath & Beyond (BBBY), Restoration Hardware (RH), and Mattress Firm (MFRM) were 20.0x, 10.4x, 38.4x, and 32.6x, respectively, as of November 19, 2015.

Additionally:

  • The PBV (price-to-book value) ratios of Williams-Sonoma, Bed Bath & Beyond, Restoration Hardware, and Mattress Firm were 5.3x, 3.5x, 4.5x, and 3.4x, respectively.
  • The PS (price-to-sales) ratios of Williams-Sonoma, Bed Bath & Beyond, Restoration Hardware, and Mattress Firm were 1.2x, 0.75x, 1.8x, and 0.71x, respectively.

According to this information, the peers are ahead of Williams-Sonoma based on PE. However, Williams-Sonoma outperformed its peers based on PBV and PS.

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ETFs that invest in Williams-Sonoma

A list of ETFs with holdings in the company is as follows:

  • The SPDR S&P Homebuilders ETF (XHB) invests 3.3% of its holdings in Williams-Sonoma.
  • The PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ) invests 3.1% of its holdings in Williams-Sonoma. The ETF tracks an index of US consumer cyclical firms selected and weighted by price momentum.
  • The Validea Market Legends ETF (VALX) invests 1.0% of its holdings in Williams-Sonoma. The ETF is an actively managed fund that selects US-listed stocks and ADRs (American depositary receipts) using models derived from the investing styles of several famous investors.

Comparing Williams-Sonoma and its ETFs

Now, let’s compare Williams-Sonoma with the ETFs that invest in it:

  • The year-to-date price movements of Williams-Sonoma, XHB, PEZ, and VALX are -10.9%, 5.7%, 0.56%, and -5.8%, respectively.
  • The PE ratios of Williams-Sonoma, XHB, PEZ, and VALX are 20.0x, 21.4x, 22.3x, and 17.6x, respectively.
  • The PBV ratios of Williams-Sonoma, XHB, PEZ, and VALX are 5.3x, 2.8x, 7.5x, and 2.5x, respectively.

According to the findings above, the ETFs outperformed Williams-Sonoma based on price movement and PE. However, Williams-Sonoma is ahead of most of its peers based on PBV.

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