Reviewing Tractor Supply (TSCO) and Its Competitors

Tractor Supply (NASDAQ:TSCO) is one of 285 public companies in the “Specialty Retail” industry, but how does it compare to its competitors? We will compare Tractor Supply to related companies based on the strength of its dividends, profitability, risk, institutional ownership, analyst recommendations, earnings and valuation.

Insider and Institutional Ownership

98.7% of Tractor Supply shares are owned by institutional investors. Comparatively, 51.6% of shares of all “Specialty Retail” companies are owned by institutional investors. 0.6% of Tractor Supply shares are owned by company insiders. Comparatively, 20.5% of shares of all “Specialty Retail” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

Tractor Supply pays an annual dividend of $0.96 per share and has a dividend yield of 3.0%. Tractor Supply pays out 51.6% of its earnings in the form of a dividend. As a group, “Specialty Retail” companies pay a dividend yield of 2.2% and pay out 36.9% of their earnings in the form of a dividend. Tractor Supply has increased its dividend for 16 consecutive years.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tractor Supply	N/A	N/A	N/A
Tractor Supply Competitors	-1.78%	-24.91%	1.75%

Earnings & Valuation

This table compares Tractor Supply and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Tractor Supply	$15.94 billion	N/A	17.33
Tractor Supply Competitors	$2.37 billion	$27.32 million	24.86

Tractor Supply has higher revenue, but lower earnings than its competitors. Tractor Supply is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Volatility & Risk

Tractor Supply has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500. Comparatively, Tractor Supply’s competitors have a beta of 1.10, meaning that their average stock price is 10% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Tractor Supply and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tractor Supply	1	14	13	0	2.43
Tractor Supply Competitors	3659	15552	21560	576	2.46

Tractor Supply presently has a consensus price target of $38.62, suggesting a potential upside of 19.77%. As a group, “Specialty Retail” companies have a potential upside of 10.77%. Given Tractor Supply’s higher possible upside, research analysts plainly believe Tractor Supply is more favorable than its competitors.

Summary

Tractor Supply competitors beat Tractor Supply on 8 of the 14 factors compared.

About Tractor Supply

Tractor Supply Company operates as a rural lifestyle retailer in the United States. The company offers various merchandise, including livestock and equine feed and equipment, poultry, fencing, and sprayers and chemicals; food, treats, and equipment for dogs, cats, and other small animals, as well as dog wellness products; seasonal and recreation products comprising tractors and riders, lawn and garden, bird feeding, power equipment, and other recreational products; truck, tool, and hardware products, such as truck accessories, trailers, generators, lubricants, batteries, and hardware and tools; and clothing, gift, and décor products consist of clothing, footwear, toys, snacks, and decorative merchandise. It provides its products under the 4health, Paws & Claws, American Farmworks, Producer's Pride, Bit & Bridle, Red Shed, Blue Mountain, Redstone, C.E. Schmidt, Retriever, Country Lane, Ridgecut, Countyline, Royal Wing, Country Tuff, Strive, Dumor, Traveller, Farm Table, Treeline, Groundwork, TSC Tractor Supply Co, Huskee, Untamed, and JobSmart brand names. The company operates its retail stores under the Tractor Supply Company, Petsense by Tractor Supply, and Orscheln Farm and Home names; and operates websites under the TractorSupply.com and Petsense.com names. It sells its products to recreational farmers, ranchers, and others. Tractor Supply Company was founded in 1938 and is based in Brentwood, Tennessee.