Tesco (OTCMKTS: TSCDY) is one of 14 public companies in the “Variety stores” industry, but how does it compare to its peers? We will compare Tesco to similar companies based on the strength of its earnings, profitability, dividends, risk, analyst recommendations, institutional ownership and valuation.

Dividends

Tesco pays an annual dividend of $0.13 per share and has a dividend yield of 1.3%. Tesco pays out 23.6% of its earnings in the form of a dividend. As a group, “Variety stores” companies pay a dividend yield of 1.5% and pay out 34.1% of their earnings in the form of a dividend.

Earnings and Valuation

This table compares Tesco and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Tesco $75.48 billion $1.58 billion 17.58
Tesco Competitors $65.18 billion $1.21 billion 24.92

Tesco has higher revenue and earnings than its peers. Tesco is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Tesco and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tesco N/A N/A N/A
Tesco Competitors 2.24% 10.74% 6.02%

Risk & Volatility

Tesco has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500. Comparatively, Tesco’s peers have a beta of 0.84, meaning that their average share price is 16% less volatile than the S&P 500.

Institutional & Insider Ownership

0.1% of Tesco shares are held by institutional investors. Comparatively, 77.1% of shares of all “Variety stores” companies are held by institutional investors. 13.8% of shares of all “Variety stores” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for Tesco and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tesco 0 1 2 0 2.67
Tesco Competitors 260 1647 2103 114 2.50

As a group, “Variety stores” companies have a potential upside of 3.14%. Given Tesco’s peers higher possible upside, analysts clearly believe Tesco has less favorable growth aspects than its peers.

Summary

Tesco peers beat Tesco on 10 of the 15 factors compared.

About Tesco

Tesco PLC, together with its subsidiaries, operates as a grocery retailer. The company also provides retail banking and insurance services. It has operations in the United Kingdom, Ireland, the Czech Republic, Hungary, Poland, Slovakia, Malaysia, Thailand, and internationally. The company serves its customers through 6,809 stores, as well as online. Tesco PLC was founded in 1919 and is based in Welwyn Garden City, the United Kingdom.

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