Analyzing Diplomat Pharmacy (DPLO) and The Competition

Diplomat Pharmacy (NYSE: DPLO) is one of 23 publicly-traded companies in the “Food Retail & Distribution” industry, but how does it compare to its peers? We will compare Diplomat Pharmacy to similar companies based on the strength of its analyst recommendations, dividends, valuation, risk, earnings, institutional ownership and profitability.

Risk and Volatility

Diplomat Pharmacy has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500. Comparatively, Diplomat Pharmacy’s peers have a beta of 0.93, meaning that their average stock price is 7% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Diplomat Pharmacy and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Diplomat Pharmacy 1 8 3 0 2.17
Diplomat Pharmacy Competitors 644 1345 1391 22 2.23

Diplomat Pharmacy currently has a consensus price target of $19.16, suggesting a potential downside of 7.32%. As a group, “Food Retail & Distribution” companies have a potential upside of 5.61%. Given Diplomat Pharmacy’s peers stronger consensus rating and higher possible upside, analysts clearly believe Diplomat Pharmacy has less favorable growth aspects than its peers.

Institutional and Insider Ownership

69.9% of Diplomat Pharmacy shares are owned by institutional investors. Comparatively, 62.7% of shares of all “Food Retail & Distribution” companies are owned by institutional investors. 30.2% of Diplomat Pharmacy shares are owned by insiders. Comparatively, 19.3% of shares of all “Food Retail & Distribution” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Diplomat Pharmacy and its peers revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Diplomat Pharmacy $4.53 billion $70.47 million 121.59
Diplomat Pharmacy Competitors $21.46 billion $1.01 billion 38.21

Diplomat Pharmacy’s peers have higher revenue and earnings than Diplomat Pharmacy. Diplomat Pharmacy 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.

Profitability

This table compares Diplomat Pharmacy and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Diplomat Pharmacy 0.27% 7.97% 4.47%
Diplomat Pharmacy Competitors 0.80% 32.79% 4.17%

Summary

Diplomat Pharmacy peers beat Diplomat Pharmacy on 10 of the 13 factors compared.

About Diplomat Pharmacy

Diplomat Pharmacy, Inc. (Diplomat) operates a specialty pharmacy business, which stocks, dispenses and distributes prescriptions for various biotechnology and specialty pharmaceutical manufacturers. The Company operates through specialty pharmacy services segment. The Company’s primary focus is on medication management programs for individuals with chronic diseases, including oncology, immunology, hepatitis, multiple sclerosis, specialty infusion therapy, and various other serious and/or long-term conditions. The Company provides specialty pharmacy support services to a national network of retailers and independent pharmacy groups, hospitals and health systems. The Company offers various services, such as specialty drug dispensing, retail specialty services, hospital and health system services, and hub services. The Company’s patient care system is used to coordinate and track patient adherence and safety.

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