Critical Analysis: Sysco Corporation (SYY) versus The Competition
Sysco Corporation (NYSE: SYY) is one of 22 publicly-traded companies in the “Food Retail & Distribution” industry, but how does it weigh in compared to its rivals? We will compare Sysco Corporation to related companies based on the strength of its institutional ownership, valuation, analyst recommendations, profitability, earnings, risk and dividends.
This table compares Sysco Corporation and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Sysco Corporation Competitors||0.71%||6.17%||3.73%|
This is a summary of recent ratings and price targets for Sysco Corporation and its rivals, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Sysco Corporation Competitors||623||1379||1342||22||2.23|
Sysco Corporation presently has a consensus price target of $56.09, indicating a potential upside of 3.51%. As a group, “Food Retail & Distribution” companies have a potential upside of 9.77%. Given Sysco Corporation’s rivals higher possible upside, analysts plainly believe Sysco Corporation has less favorable growth aspects than its rivals.
Earnings and Valuation
This table compares Sysco Corporation and its rivals top-line revenue, earnings per share and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|Sysco Corporation||$55.37 billion||$1.14 billion||24.63|
|Sysco Corporation Competitors||$21.01 billion||$343.54 million||452.88|
Sysco Corporation has higher revenue and earnings than its rivals. Sysco Corporation is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
Institutional and Insider Ownership
80.1% of Sysco Corporation shares are held by institutional investors. Comparatively, 54.1% of shares of all “Food Retail & Distribution” companies are held by institutional investors. 9.6% of Sysco Corporation shares are held by company insiders. Comparatively, 15.6% of shares of all “Food Retail & Distribution” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Risk and Volatility
Sysco Corporation has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500. Comparatively, Sysco Corporation’s rivals have a beta of 0.94, suggesting that their average stock price is 7% less volatile than the S&P 500.
Sysco Corporation pays an annual dividend of $1.32 per share and has a dividend yield of 2.4%. Sysco Corporation pays out 60.0% of its earnings in the form of a dividend. As a group, “Food Retail & Distribution” companies pay a dividend yield of 2.6% and pay out 161.2% of their earnings in the form of a dividend. Sysco Corporation has raised its dividend for 46 consecutive years.
Sysco Corporation beats its rivals on 9 of the 15 factors compared.
Sysco Corporation Company Profile
Sysco Corporation (Sysco) is a distributor of food and related products primarily to the foodservice or food-away-from-home industry. The Company’s segments include Broadline, SYGMA and Other. The Broadline segment includes its Broadline operations located in the Bahamas, Canada, Costa Rica, Ireland, Mexico and the United States. Broadline operating companies distribute a full line of food products and a range of non-food products to both traditional and chain restaurant customers, hospitals, schools, hotels, industrial caterers and other venues where foodservice products are served. SYGMA operating companies distribute a full line of food products and a range of non-food products to certain chain restaurant customer locations. The Other segment includes the Company’s specialty produce; custom-cut meat operations; lodging industry segments; a company that distributes specialty imported products; a company that distributes to international customers, and Sysco Ventures platform.
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