If you're in a low to medium competition industry, having one competitor out rank you can be a problem. There's a significant drop in the click through rate for the first and second position, from nearly 32 percent to almost 25 percent. You can use your competitor's ranking to encourage you to make your own site better.
Sometimes, it helps to get knowledgeable, fresh eyes to look at your site. If you view it every day, it's easy to overlook obvious flaws. You also want someone to tell you if your site looks dated, especially if you designed it years ago. When a website looks out of date, visitors may hit the back button. If the bounce rate is too high, Google will take note and rank the site lower. A high bounce rate indicates visitors are not happy and Google wants to provide the best results.
Images also count in the user experience. High resolution photos, videos, infographics and other types of content engage visitors more than text alone. Additionally, the text has to be well written and free of spelling and grammar errors. People will stay on your site if they have a good user experience. There can't be any broken links, confusing navigation or text only about selling your product. Visitors want information first.
Assuming you understand SEO and you're targeting the right keywords, there could be other reasons your competitor outranks you. If your site loads quickly and is responsive, you need to look for less obvious reasons. Does your site have bad reviews online? Google counts reviews when ranking sites since they don't want to put a business with poor reviews in the top position.
A complete audit of your site is the only way to find problems that are not immediately obvious to you. For more information click here https://www.reddit.com/r/SEO/comments/htf1dj/opiniononwhymycompetitorranksabove_me/.