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

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 company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

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

Earnings & Valuation

This table compares Tesco and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Tesco $75.48 billion $1.56 billion 17.95
Tesco Competitors $65.18 billion $1.21 billion 25.39

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.

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.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Tesco and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tesco 0 0 2 0 3.00
Tesco Competitors 260 1648 2106 115 2.50

As a group, “Variety stores” companies have a potential upside of 1.25%. Given Tesco’s rivals higher possible upside, analysts clearly believe Tesco has less favorable growth aspects than its rivals.

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 2.24% 10.74% 6.02%

Summary

Tesco rivals 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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