Head-To-Head Review: Tabcorp (TACBY) versus Its Rivals

Dividends

Tabcorp pays an annual dividend of $0.30 per share and has a dividend yield of 39.7%. Tabcorp pays out 87.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Hotels, Restaurants & Leisure” companies pay a dividend yield of 3.4% and pay out 45.4% of their earnings in the form of a dividend.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tabcorp	N/A	N/A	N/A
Tabcorp Competitors	-9.46%	-35.99%	1.90%

Insider and Institutional Ownership

0.0% of Tabcorp shares are owned by institutional investors. Comparatively, 48.8% of shares of all “Hotels, Restaurants & Leisure” companies are owned by institutional investors. 21.9% of shares of all “Hotels, Restaurants & Leisure” companies are owned 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.

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Tabcorp	N/A	N/A	2.19
Tabcorp Competitors	$3.34 billion	$246.75 million	10.70

Tabcorp’s peers have higher revenue and earnings than Tabcorp. Tabcorp is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Tabcorp peers beat Tabcorp on 6 of the 9 factors compared.

Tabcorp Company Profile

Tabcorp Holdings Limited, together with its subsidiaries, provides gambling and entertainment services in Australia. It operates through Wagering and Media, and Gaming Services segments. The Wagering and Media segment offers through a network of TAB agencies, hotels and clubs, and on-course operations, as well as through retail, Internet, mobile devices, and phone. It also provides Trackside, a computer simulate racing product; and international wagering and pooling services. In addition, the company engages in the Sky Racing television channels broadcasting thoroughbred, and harness and greyhound racing to audiences; Sky Racing Active, a digital app providing Sky Racing's live and on-demand racing content across thoroughbred, and harness and greyhound racing; and Sky Sports Radio network. The Gaming Services segment offers electronic gaming machine (EGM) monitoring and related services; and provides MAX performance solutions, technical services, and integrated systems, as well as provides products, technology, financing, support, maintenance, and other gaming services. The company was founded in 1881 and is based in Melbourne, Australia.