How to analyse competition
Use these VRO tools to study what competition the company you are interested in faces and whether it is better placed than the competitors
By Research Desk | May 23, 2018
On Value Research Online, you will find tools that you can use to compare stocks within an industry or a sector. The advantage of these tools is that you can identify who the major competitors are and how well they are placed in comparison to the company you are researching.
Peer comparison: The Peer Comparison option appears under the Snapshot tab on the stock page. Here the company under consideration is compared with two other companies of the same sector across parameters like market capitalisation, revenue, net profit, net margin, return on equity, price-to-book value and price to earnings. The two companies with which the company you are researching is compared are picked as per their sizes. If you are looking at a mid-cap company, then it will be compared with mid-cap companies only (if available). The Peer Comparison feature is smartly designed to make relevant changes for a sector, like banking, with different financial parameters like interest income, net interest income, net interest margin and return on assets.
Related stocks: If you want to have a look at the companies of a sector other than the one you are researching, you can use the table, called Related Stocks, on the top right of the stock page.
This table gives you live prices of stocks and price change from the last day's closing price. Simply click on the company name to go to the company page to analyse it individually.
Full industry/sector comparison: If the Peer Comparison section does not fulfil your purpose and you want to have a longer list of companies, then on the stock page simply click on the industry or the sector name given just below the name of the stock.
You will be guided to an interactive stock selector where you can generate the complete list of the companies in a particular industry. Here you can do a comparative analysis across different parameters like returns, financial health, growth and valuations. You can also sort the data as per any field by clicking on the field name.
Change the selection: You can even make changes to the company list. For example, you can add more industries from the same sector. Say, you are looking at software companies and want to add the hardware companies from the IT sector, then simply click on the Define Your Stock Universe tab. The drop-down menu will open a plethora of options to choose the companies from. Now, within the same sector you can select multiple industries from the drop-down list. Choose your desired options and click on Update Stock List.