Head to Head Contrast: Tesco (TSCDY) vs. Its Competitors

Tesco (OTCMKTS: TSCDY) is one of 14 publicly-traded companies in the “Variety stores” industry, but how does it contrast to its competitors? We will compare Tesco to similar businesses based on the strength of its valuation, earnings, analyst recommendations, institutional ownership, dividends, risk and profitability.

Dividends

Tesco pays an annual dividend of $0.13 per share and has a dividend yield of 1.3%. Tesco pays out 23.6% of its earnings in the form of a dividend. As a group, “Variety stores” companies pay a dividend yield of 1.5% and pay out 34.1% of their earnings in the form of a dividend.

Earnings & Valuation

This table compares Tesco and its competitors revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Tesco $75.48 billion $1.56 billion 17.95
Tesco Competitors $65.18 billion $1.21 billion 25.39

Tesco has higher revenue and earnings than its competitors. Tesco is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of recent ratings and price targets for Tesco and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tesco 0 0 2 0 3.00
Tesco Competitors 260 1648 2106 115 2.50

As a group, “Variety stores” companies have a potential upside of 1.25%. Given Tesco’s competitors higher possible upside, analysts clearly believe Tesco has less favorable growth aspects than its competitors.

Risk & Volatility

Tesco has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500. Comparatively, Tesco’s competitors have a beta of 0.84, suggesting that their average stock price is 16% less volatile than the S&P 500.

Profitability

This table compares Tesco and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tesco N/A N/A N/A
Tesco Competitors 2.24% 10.74% 6.02%

Institutional & Insider Ownership

0.1% of Tesco shares are held by institutional investors. Comparatively, 77.1% of shares of all “Variety stores” companies are held by institutional investors. 13.8% of shares of all “Variety stores” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Tesco competitors beat Tesco on 10 of the 15 factors compared.

About Tesco

Tesco PLC, together with its subsidiaries, operates as a grocery retailer. The company also provides retail banking and insurance services. It has operations in the United Kingdom, Ireland, the Czech Republic, Hungary, Poland, Slovakia, Malaysia, Thailand, and internationally. The company serves its customers through 6,809 stores, as well as online. Tesco PLC was founded in 1919 and is based in Welwyn Garden City, the United Kingdom.

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