Critical Review: Pick n Pay Stores (PKPYY) versus The Competition

Pick n Pay Stores (OTCMKTS:PKPYY) is one of 143 public companies in the “Broadline Retail” industry, but how does it weigh in compared to its competitors? We will compare Pick n Pay Stores to related businesses based on the strength of its dividends, institutional ownership, profitability, earnings, risk, valuation and analyst recommendations.

Valuation and Earnings

This table compares Pick n Pay Stores and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Pick n Pay Stores	N/A	N/A	1.01
Pick n Pay Stores Competitors	$23.48 billion	$1.70 billion	-219.61

Pick n Pay Stores’ competitors have higher revenue and earnings than Pick n Pay Stores. Pick n Pay Stores 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.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Pick n Pay Stores and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pick n Pay Stores	0	0	1	0	3.00
Pick n Pay Stores Competitors	1372	5341	10759	298	2.56

As a group, “Broadline Retail” companies have a potential upside of 12.67%. Given Pick n Pay Stores’ competitors higher possible upside, analysts plainly believe Pick n Pay Stores has less favorable growth aspects than its competitors.

Dividends

Pick n Pay Stores pays an annual dividend of $3.18 per share and has a dividend yield of 52.1%. Pick n Pay Stores pays out 52.9% of its earnings in the form of a dividend. As a group, “Broadline Retail” companies pay a dividend yield of 17.9% and pay out 12.3% of their earnings in the form of a dividend.

Insider and Institutional Ownership

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 hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Pick n Pay Stores and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pick n Pay Stores	N/A	N/A	N/A
Pick n Pay Stores Competitors	-3.45%	-36.11%	-2.58%

Summary

Pick n Pay Stores beats its competitors on 7 of the 13 factors compared.

About Pick n Pay Stores

Pick n Pay Stores Limited, together with its subsidiaries, engages in the retail of food, grocery, clothing, liquor, and general merchandise products in South Africa and Rest of Africa. It owns and franchises hypermarkets, supermarkets, clothing stores, liquor stores, superstores, build stores, punch stores, and express stores under the Pick n Pay and Boxer brands. The company also offers its products through an online shopping platform www.pnp.co.za. Pick n Pay Stores Limited was founded in 1967 and is based in Cape Town, South Africa.