PriceSmart (NASDAQ: PSMT) is one of 12 publicly-traded companies in the “Variety stores” industry, but how does it compare to its peers? We will compare PriceSmart to related businesses based on the strength of its institutional ownership, analyst recommendations, profitability, valuation, risk, dividends and earnings.
PriceSmart pays an annual dividend of $0.70 per share and has a dividend yield of 0.8%. PriceSmart pays out 23.5% of its earnings in the form of a dividend. As a group, “Variety stores” companies pay a dividend yield of 1.6% and pay out 36.6% of their earnings in the form of a dividend.
This table compares PriceSmart and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
PriceSmart has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500. Comparatively, PriceSmart’s peers have a beta of 0.89, suggesting that their average stock price is 11% less volatile than the S&P 500.
Institutional and Insider Ownership
77.3% of PriceSmart shares are held by institutional investors. Comparatively, 76.5% of shares of all “Variety stores” companies are held by institutional investors. 28.0% of PriceSmart shares are held by insiders. Comparatively, 13.9% of shares of all “Variety stores” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares PriceSmart and its peers revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|PriceSmart||$3.00 billion||$90.72 million||29.85|
|PriceSmart Competitors||$65.63 billion||$1.74 billion||21.81|
PriceSmart’s peers have higher revenue and earnings than PriceSmart. PriceSmart is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
This is a summary of current recommendations for PriceSmart and its peers, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
PriceSmart currently has a consensus target price of $91.67, suggesting a potential upside of 3.05%. As a group, “Variety stores” companies have a potential upside of 4.88%. Given PriceSmart’s peers stronger consensus rating and higher possible upside, analysts plainly believe PriceSmart has less favorable growth aspects than its peers.
PriceSmart peers beat PriceSmart on 9 of the 15 factors compared.
PriceSmart Company Profile
PriceSmart, Inc. owns and operates the U.S.-style membership shopping warehouse clubs in Latin America and the Caribbean. The company's warehouse clubs offer brand name and private label consumer goods to individuals and businesses. As of October 26, 2017, it operated 40 warehouse clubs comprising 7 each in Colombia and Costa Rica; 5 in Panama; 4 in Trinidad; 3 each in Guatemala, Honduras, and the Dominican Republic; 2 in El Salvador and Nicaragua; and 1 each in Aruba, Barbados, Jamaica, and the United States Virgin Islands. PriceSmart, Inc. was founded in 1994 and is headquartered in San Diego, California.
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