Risk and Volatility
PriceSmart (NASDAQ: PSMT) is one of 12 publicly-traded companies in the “Variety stores” industry, but how does it contrast to its rivals? We will compare PriceSmart to related companies based on the strength of its profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.
PriceSmart has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500. Comparatively, PriceSmart’s rivals have a beta of 0.89, indicating that their average stock price is 11% less volatile than the S&P 500.
Institutional and Insider Ownership
77.9% of PriceSmart shares are held by institutional investors. Comparatively, 76.0% of shares of all “Variety stores” companies are held by institutional investors. 28.0% of PriceSmart shares are held by company insiders. Comparatively, 13.3% of shares of all “Variety stores” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This is a breakdown of current ratings and target prices for PriceSmart and its rivals, as provided by MarketBeat.com.
PriceSmart currently has a consensus target price of $91.67, indicating a potential upside of 11.04%. As a group, “Variety stores” companies have a potential upside of 5.84%. Given PriceSmart’s higher probable upside, analysts clearly believe PriceSmart is more favorable than its rivals.
Earnings and Valuation
This table compares PriceSmart and its rivals gross revenue, earnings per share and valuation.
PriceSmart’s rivals have higher revenue and earnings than PriceSmart. PriceSmart is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.
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 1.7% and pay out 42.1% of their earnings in the form of a dividend.
This table compares PriceSmart and its rivals’ net margins, return on equity and return on assets.
PriceSmart rivals beat PriceSmart on 8 of the 15 factors compared.
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.