Essendant (NASDAQ: ESND) is one of 120 public companies in the “OTHER CONS DISC” industry, but how does it weigh in compared to its rivals? We will compare Essendant to similar businesses based on the strength of its valuation, profitability, earnings, analyst recommendations, institutional ownership, dividends and risk.

Dividends

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Essendant pays an annual dividend of $0.56 per share and has a dividend yield of 6.9%. Essendant pays out -7.7% of its earnings in the form of a dividend. As a group, “OTHER CONS DISC” companies pay a dividend yield of 1.6% and pay out 33.5% of their earnings in the form of a dividend. Essendant is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares Essendant and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Essendant $5.04 billion -$266.98 million -1.11
Essendant Competitors $1.75 billion $91.09 million 24.81

Essendant has higher revenue, but lower earnings than its rivals. Essendant 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.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Essendant 0 0 0 0 N/A
Essendant Competitors 435 2336 3496 148 2.52

As a group, “OTHER CONS DISC” companies have a potential upside of 14.47%. Given Essendant’s rivals higher probable upside, analysts plainly believe Essendant has less favorable growth aspects than its rivals.

Insider & Institutional Ownership

97.1% of Essendant shares are held by institutional investors. Comparatively, 57.1% of shares of all “OTHER CONS DISC” companies are held by institutional investors. 2.2% of Essendant shares are held by insiders. Comparatively, 21.1% of shares of all “OTHER CONS DISC” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Essendant -5.30% 4.53% 1.35%
Essendant Competitors -7.86% 5.47% 2.70%

Risk & Volatility

Essendant has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500. Comparatively, Essendant’s rivals have a beta of -31.74, suggesting that their average share price is 3,274% less volatile than the S&P 500.

About Essendant

Essendant Inc. (Essendant) is a wholesale distributor of workplace items. The Company’s product portfolio includes Janitorial, Foodservice and Breakroom Supplies (JanSan), Technology Products, Traditional Office Products, Industrial Supplies, Cut Sheet Paper Products, Automotive Products and Office Furniture. It operates principally within the United States, with additional operations in Canada and Dubai, the United Arab Emirates (UAE). As of December 31, 2016, the Company provided access to over 22,000 items in these lines: janitorial supplies (cleaners and cleaning accessories), breakroom items (food and beverage products), foodservice consumables (such as disposable cups, plates and utensils), safety and security items, and paper and packaging supplies. As of December 31, 2016, the Company provided access to approximately 11,000 items, including imaging supplies, data storage, digital cameras, computer accessories and computer hardware items, such as printers and other peripherals.

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