Target (TGT) versus Its Competitors Head to Head Analysis

Target (NYSE:TGT) is one of 149 public companies in the “Consumer Staples Distribution & Retail” industry, but how does it contrast to its competitors? We will compare Target to similar companies based on the strength of its risk, profitability, valuation, dividends, analyst recommendations, earnings and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Target	4.08%	23.23%	6.41%
Target Competitors	-25.88%	3.76%	2.96%

Valuation & Earnings

This table compares Target and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Target	$104.78 billion	$3.71 billion	16.95
Target Competitors	$34.75 billion	$846.26 million	16.21

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

Volatility & Risk

Target has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, Target’s competitors have a beta of 0.44, indicating that their average stock price is 56% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Target and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Target	3	17	13	1	2.35
Target Competitors	2242	8268	10040	459	2.41

Target currently has a consensus price target of $161.50, indicating a potential downside of 1.08%. As a group, “Consumer Staples Distribution & Retail” companies have a potential upside of 56.32%. Given Target’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Target has less favorable growth aspects than its competitors.

Institutional & Insider Ownership

79.7% of Target shares are owned by institutional investors. Comparatively, 45.0% of shares of all “Consumer Staples Distribution & Retail” companies are owned by institutional investors. 0.1% of Target shares are owned by company insiders. Comparatively, 19.7% of shares of all “Consumer Staples Distribution & Retail” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

Target pays an annual dividend of $4.64 per share and has a dividend yield of 2.8%. Target pays out 48.2% of its earnings in the form of a dividend. As a group, “Consumer Staples Distribution & Retail” companies pay a dividend yield of 3.7% and pay out 36.7% of their earnings in the form of a dividend. Target has increased its dividend for 54 consecutive years. Target lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

Target beats its competitors on 9 of the 15 factors compared.

About Target

Target Corporation operates as a general merchandise retailer in the United States. The company offers apparel for women, men, boys, girls, toddlers, and infants and newborns, as well as jewelry, accessories, and shoes; and beauty and personal care, baby gear, cleaning, paper products, and pet supplies. It also provides dry grocery, dairy, frozen food, beverages, candy, snacks, deli, bakery, meat, and food service; electronics, which includes video game hardware and software, toys, entertainment, sporting goods, and luggage; and furniture, lighting, storage, kitchenware, small appliances, home decor, bed and bath, home improvement, school/office supplies, greeting cards and party supplies, and other seasonal merchandise. In addition, the company sells merchandise through periodic design and creative partnerships, and shop-in-shop experience; and in-store amenities. Further, it sells its products through its stores; and digital channels, including Target.com. Target Corporation was incorporated in 1902 and is headquartered in Minneapolis, Minnesota.