Shoprite (SRGHY) versus Its Competitors Financial Comparison

Shoprite (OTCMKTS:SRGHY) is one of 143 public companies in the “Broadline Retail” industry, but how does it contrast to its rivals? We will compare Shoprite to similar businesses based on the strength of its dividends, institutional ownership, analyst recommendations, risk, profitability, earnings and valuation.

Insider & Institutional Ownership

0.0% of Shoprite shares are held by institutional investors. Comparatively, 44.1% of shares of all “Broadline Retail” companies are held by institutional investors. 23.8% of shares of all “Broadline Retail” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shoprite	0	0	1	0	3.00
Shoprite Competitors	1372	5336	10751	295	2.56

As a group, “Broadline Retail” companies have a potential upside of 15.37%. Given Shoprite’s rivals higher probable upside, analysts plainly believe Shoprite has less favorable growth aspects than its rivals.

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Shoprite	N/A	N/A	2.70
Shoprite Competitors	$23.56 billion	$1.70 billion	-218.16

Shoprite’s rivals have higher revenue and earnings than Shoprite. Shoprite 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.

Dividends

Shoprite pays an annual dividend of $4.22 per share and has a dividend yield of 22.4%. Shoprite pays out 60.5% of its earnings in the form of a dividend. As a group, “Broadline Retail” companies pay a dividend yield of 32.6% and pay out 11.5% of their earnings in the form of a dividend. Shoprite lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Shoprite and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shoprite	N/A	N/A	N/A
Shoprite Competitors	-4.19%	-36.17%	-2.88%

Summary

Shoprite rivals beat Shoprite on 7 of the 13 factors compared.

Shoprite Company Profile

Shoprite Holdings Ltd, an investment holding company, primarily engages in the food retailing business in South Africa and internationally. The company operates through four segments: Supermarkets RSA, Supermarkets Non-RSA, Furniture, and Other Operating segments. It also offers clothing, general merchandise, cosmetics, and liquor products; furniture and home entertainment products; and electrical and household appliances. In addition, the company distributes various pharmaceutical products and surgical equipment to pharmacies, hospitals, clinics, dispensing doctors, and veterinary surgeons. It operates stores under the Shoprite, Checkers, Checkers Hyper, Usave, Checkers Foods, OK Furniture, OK Power Express, House & Home, Shoprite LiquorShop, OK, Checkers LiquorShop, MediRite, Sentra, Megasave, OK Liquor, UNIQ, Petshop Science, Checkers Outdoor, Transpharm, Checkers Little Me, K'nect, Computicket, and Checkers Sixty60 brands. The company also operates franchise stores. Further, the company provides ticketing, and car rental and accommodation services; stadium management, capacity management, travel management, and access control solutions; and credit financing, financial, and treasury management services. Additionally, it invests in properties; and sells products to franchisees under drop-shipment arrangements. Shoprite Holdings Ltd was incorporated in 1936 and is based in Brackenfell, South Africa.