Critical Review: Safeway (SWY) vs. Its Competitors
Safeway (NYSE: SWY) is one of 22 publicly-traded companies in the “Food Retail & Distribution” industry, but how does it contrast to its competitors? We will compare Safeway to related companies based on the strength of its dividends, risk, analyst recommendations, institutional ownership, valuation, earnings and profitability.
Volatility & Risk
Safeway has a beta of 1.09, meaning that its share price is 9% more volatile than the S&P 500. Comparatively, Safeway’s competitors have a beta of 0.94, meaning that their average share price is 6% less volatile than the S&P 500.
This is a breakdown of current ratings and price targets for Safeway and its competitors, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
As a group, “Food Retail & Distribution” companies have a potential upside of 7.19%. Given Safeway’s competitors higher probable upside, analysts clearly believe Safeway has less favorable growth aspects than its competitors.
Earnings and Valuation
This table compares Safeway and its competitors revenue, earnings per share and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|Safeway Competitors||$21.17 billion||$332.40 million||553.80|
Safeway’s competitors have higher revenue and earnings than Safeway. Safeway 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.
This table compares Safeway and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
54.0% of shares of all “Food Retail & Distribution” companies are owned by institutional investors. 15.6% of shares of all “Food Retail & Distribution” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Safeway competitors beat Safeway on 7 of the 8 factors compared.
Safeway Inc., is an food and drug retail company. The Company owns and operates GroceryWorks.com Operating Company, LLC, an online grocery channel doing business under the names Safeway.com and Vons.com. Blackhawk, a majority-owned subsidiary of Safeway, is a prepaid payment network utilizing proprietary technology to offer gift cards, other prepaid products and payment services. Blackhawk’s payment network supports its three primary constituents: consumers who purchase the products and services Blackhawk offers, content providers who offer branded products that are redeemable for goods and services, and distribution partners who sell the products. Blackhawk’s product offerings include gift cards, prepaid telecom products and prepaid financial services products, including general purpose reloadable cards and Blackhawk’s reload network.
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