Reviewing Grocery Outlet (GO) & Its Peers

Grocery Outlet (NASDAQ:GO) is one of 150 public companies in the “Consumer Staples Distribution & Retail” industry, but how does it contrast to its rivals? We will compare Grocery Outlet to similar companies based on the strength of its institutional ownership, dividends, analyst recommendations, earnings, valuation, profitability and risk.

Institutional & Insider Ownership

99.9% of Grocery Outlet shares are held by institutional investors. Comparatively, 45.0% of shares of all “Consumer Staples Distribution & Retail” companies are held by institutional investors. 5.6% of Grocery Outlet shares are held by company insiders. Comparatively, 19.7% of shares of all “Consumer Staples Distribution & Retail” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Grocery Outlet and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Grocery Outlet	$4.75 billion	-$224.91 million	-3.38
Grocery Outlet Competitors	$36.10 billion	$834.66 million	17.62

Grocery Outlet’s rivals have higher revenue and earnings than Grocery Outlet. Grocery Outlet 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.

Volatility and Risk

Grocery Outlet has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500. Comparatively, Grocery Outlet’s rivals have a beta of 0.44, meaning that their average stock price is 56% less volatile than the S&P 500.

Profitability

This table compares Grocery Outlet and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grocery Outlet	-7.99%	5.49%	1.58%
Grocery Outlet Competitors	-26.10%	3.81%	2.91%

Analyst Ratings

This is a summary of current ratings and target prices for Grocery Outlet and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grocery Outlet	2	12	1	0	1.93
Grocery Outlet Competitors	2246	8285	10080	459	2.42

Grocery Outlet presently has a consensus target price of $11.41, indicating a potential downside of 12.61%. As a group, “Consumer Staples Distribution & Retail” companies have a potential upside of 55.18%. Given Grocery Outlet’s rivals stronger consensus rating and higher possible upside, analysts plainly believe Grocery Outlet has less favorable growth aspects than its rivals.

Summary

Grocery Outlet rivals beat Grocery Outlet on 9 of the 13 factors compared.

Grocery Outlet Company Profile

Grocery Outlet Holding Corp. operates Grocery Outlet Bargain Market, a discount grocery chain offering brand-name products and private-label items at value-oriented prices. Its stores carry a range of goods, including groceries, fresh produce, meat, dairy, frozen foods and household products. The company uses opportunistic buying to source products, which can result in changing assortments and limited-time deals. Founded in 1946 by Jim Read, Grocery Outlet has grown from a California-based business into a retailer serving communities across the western United States and parts of the East Coast.