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

Profitability

This table compares Tesco and its rivals’ 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 2.46% 11.66% 6.44%

Analyst Ratings

This is a summary of current ratings and price targets for Tesco and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tesco 0 2 2 0 2.50
Tesco Competitors 259 1640 2089 114 2.50

As a group, “Variety stores” companies have a potential upside of 5.29%. Given Tesco’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Tesco has less favorable growth aspects than its rivals.

Dividends

Tesco pays an annual dividend of $0.13 per share and has a dividend yield of 1.5%. Tesco pays out 28.3% of its earnings in the form of a dividend. As a group, “Variety stores” companies pay a dividend yield of 1.6% and pay out 33.9% of their earnings in the form of a dividend.

Volatility & Risk

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

Valuation & Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Tesco $74.07 billion $1.58 billion 19.48
Tesco Competitors $65.06 billion $1.20 billion 25.92

Tesco has higher revenue and earnings than its rivals. Tesco 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.

Institutional and Insider Ownership

0.1% of Tesco shares are held by institutional investors. Comparatively, 77.0% of shares of all “Variety stores” companies are held by institutional investors. 13.8% of shares of all “Variety stores” companies are held 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.

Summary

Tesco rivals beat Tesco on 12 of the 15 factors compared.

Tesco Company Profile

Tesco Plc engages in the retail industry. It operates through the following segments: Retailing and Associated Activities; and Retail Banking and Insurance Services. The Retailing and Associated Activities segment includes the United Kingdom (UK) and Republic of Ireland (ROI); Central Europe; and Asia. The Retail Banking and Insurance Services segment engages in the provision of retail banking and insurance services through Tesco Bank. The company was founded by John Edward Cohen in 1919 and is headquartered in Welwyn Garden City, the United Kingdom.

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