US Foods (NYSE: USFD) is one of 21 public companies in the “Food Retail & Distribution” industry, but how does it contrast to its peers? We will compare US Foods to related companies based on the strength of its institutional ownership, valuation, risk, dividends, earnings, profitability and analyst recommendations.

Institutional & Insider Ownership

96.9% of US Foods shares are owned by institutional investors. Comparatively, 62.3% of shares of all “Food Retail & Distribution” companies are owned by institutional investors. 1.6% of US Foods shares are owned by company insiders. Comparatively, 12.8% of shares of all “Food Retail & Distribution” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility and Risk

US Foods has a beta of 1.38, meaning that its stock price is 38% more volatile than the S&P 500. Comparatively, US Foods’ peers have a beta of 0.97, meaning that their average stock price is 3% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for US Foods and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
US Foods 0 3 6 0 2.67
US Foods Competitors 647 1346 1376 22 2.23

US Foods presently has a consensus target price of $31.75, indicating a potential upside of 4.48%. As a group, “Food Retail & Distribution” companies have a potential upside of 3.82%. Given US Foods’ stronger consensus rating and higher probable upside, equities analysts clearly believe US Foods is more favorable than its peers.

Profitability

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

Net Margins Return on Equity Return on Assets
US Foods 1.11% 12.64% 3.61%
US Foods Competitors 1.03% 7.48% 4.40%

Valuation & Earnings

This table compares US Foods and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
US Foods $22.92 billion $209.79 million 25.97
US Foods Competitors $21.17 billion $332.40 million 423.68

US Foods has higher revenue, but lower earnings than its peers. US Foods 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.

Summary

US Foods beats its peers on 8 of the 13 factors compared.

US Foods Company Profile

US Foods Holding Corp. is a holding company. The Company is a foodservice distributor in the United States. The Company, through US Foods, Inc. (USF), markets and primarily distributes fresh, frozen and dry food and non-food products to foodservice customers throughout the United States. These customers include independently owned single and multi-unit restaurants, regional concepts, national restaurant chains, hospitals, nursing homes, hotels and motels, country clubs, government and military organizations, colleges and universities, and retail locations. As of December 31, 2016, the Company provided approximately 400,000 fresh, frozen, and dry food stock-keeping units (SKUs), as well as non-food items, sourced from over 5,000 suppliers. As of January 31, 2017, it maintained 75 primary operating facilities, consisting of its 60 distribution centers and other supporting facilities.

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