Diplomat Pharmacy (NYSE: DPLO) and Performance Food Group (NYSE:PFGC) are both retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, risk, earnings, dividends and valuation.

Insider and Institutional Ownership

69.9% of Diplomat Pharmacy shares are owned by institutional investors. Comparatively, 79.3% of Performance Food Group shares are owned by institutional investors. 35.4% of Diplomat Pharmacy shares are owned by insiders. Comparatively, 3.5% of Performance Food Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Diplomat Pharmacy and Performance Food Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Diplomat Pharmacy 1 8 2 0 2.09
Performance Food Group 0 5 5 0 2.50

Diplomat Pharmacy presently has a consensus target price of $17.89, indicating a potential upside of 6.82%. Performance Food Group has a consensus target price of $27.98, indicating a potential upside of 0.63%. Given Diplomat Pharmacy’s higher possible upside, equities analysts clearly believe Diplomat Pharmacy is more favorable than Performance Food Group.

Volatility and Risk

Diplomat Pharmacy has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500. Comparatively, Performance Food Group has a beta of -0.31, indicating that its share price is 131% less volatile than the S&P 500.

Profitability

This table compares Diplomat Pharmacy and Performance Food Group’s 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%
Performance Food Group 0.57% 15.05% 3.52%

Valuation & Earnings

This table compares Diplomat Pharmacy and Performance Food Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Diplomat Pharmacy $4.53 billion 0.25 $70.47 million $0.17 98.53
Performance Food Group $16.76 billion 0.17 $342.30 million $0.93 29.89

Performance Food Group has higher revenue and earnings than Diplomat Pharmacy. Performance Food Group is trading at a lower price-to-earnings ratio than Diplomat Pharmacy, indicating that it is currently the more affordable of the two stocks.

Summary

Performance Food Group beats Diplomat Pharmacy on 8 of the 14 factors compared between the two stocks.

Diplomat Pharmacy Company Profile

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.

Performance Food Group Company Profile

Performance Food Group Company, through its subsidiaries, markets and distributes food and food-related products. The Company operates through three segments: Performance Foodservice, PFG Customized and Vistar. The Performance Foodservice segment distributes a range of national brands, customer brands, and branded food and food-related products. It sells to independent or street, and multi-unit or chain, restaurants and other institutions. Its PFG Customized segment provides service to family and casual dining restaurant chains, and fast casual and quick service restaurant chains. Its Vistar segment specializes in distributing candy, snacks, beverages and other items nationally to the vending, office coffee service, theater, hospitality and other channels. Its products include a range of frozen foods, such as meats, fully prepared appetizers and entrees, and desserts; a range of canned and dry foods; fresh meats; dairy products; beverage products, and snack and other products.

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