Head to Head Analysis: TravelCenters of America (TA) versus Its Rivals

TravelCenters of America (NASDAQ: TA) is one of 20 public companies in the “Automotive dealers & gasoline service stations” industry, but how does it compare to its rivals? We will compare TravelCenters of America to similar businesses based on the strength of its earnings, dividends, analyst recommendations, institutional ownership, profitability, valuation and risk.

Earnings & Valuation

This table compares TravelCenters of America and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
TravelCenters of America $6.05 billion $9.26 million -11.93
TravelCenters of America Competitors $8.01 billion $220.42 million 12.39



TravelCenters of America’s rivals have higher revenue and earnings than TravelCenters of America. TravelCenters of America is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of recent ratings and target prices for TravelCenters of America and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TravelCenters of America 0 1 2 0 2.67
TravelCenters of America Competitors 115 613 664 28 2.43

TravelCenters of America currently has a consensus price target of $7.67, suggesting a potential upside of 114.15%. As a group, “Automotive dealers & gasoline service stations” companies have a potential upside of 17.46%. Given TravelCenters of America’s stronger consensus rating and higher probable upside, equities analysts clearly believe TravelCenters of America is more favorable than its rivals.

Profitability

This table compares TravelCenters of America and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TravelCenters of America 0.15% -2.20% -0.74%
TravelCenters of America Competitors 3.22% 33.52% 3.60%

Risk & Volatility

TravelCenters of America has a beta of 1.72, suggesting that its stock price is 72% more volatile than the S&P 500. Comparatively, TravelCenters of America’s rivals have a beta of 9.98, suggesting that their average stock price is 898% more volatile than the S&P 500.

Institutional and Insider Ownership

33.0% of TravelCenters of America shares are held by institutional investors. Comparatively, 64.7% of shares of all “Automotive dealers & gasoline service stations” companies are held by institutional investors. 3.8% of TravelCenters of America shares are held by insiders. Comparatively, 15.7% of shares of all “Automotive dealers & gasoline service stations” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

TravelCenters of America rivals beat TravelCenters of America on 9 of the 12 factors compared.

About TravelCenters of America

TravelCenters of America LLC (TravelCenters) operates and franchises travel centers and convenience store and restaurant locations. The Company’s segments include travel centers, convenience stores, and corporate and other. The Company offers a range of products and services, including diesel fuel and gasoline, as well as nonfuel products and services, such as truck repair and maintenance services, full service restaurants, quick service restaurants (QSRs), travel/convenience stores and various customer amenities. Its customers include trucking fleets and their drivers, independent truck drivers, highway and local motorists, and casual diners. As of December 31, 2016, the Company’s business included 255 travel centers in 43 states in the United States primarily along the United States interstate highway system, and the province of Ontario, Canada. As of December 31, 2016, the Company’s business included 233 convenience stores in 11 states in the United States.

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