Contrasting Party City Holdco (PRTY) & Its Rivals

Party City Holdco (NYSE: PRTY) is one of 21 public companies in the “Other Specialty Retailers” industry, but how does it compare to its rivals? We will compare Party City Holdco to related companies based on the strength of its dividends, profitability, valuation, institutional ownership, risk, analyst recommendations and earnings.

Risk and Volatility

Party City Holdco has a beta of 2.66, meaning that its stock price is 166% more volatile than the S&P 500. Comparatively, Party City Holdco’s rivals have a beta of 1.24, meaning that their average stock price is 24% more volatile than the S&P 500.

Profitability

This table compares Party City Holdco and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Party City Holdco 4.97% 13.97% 4.09%
Party City Holdco Competitors 22.58% -58.13% 6.34%

Valuation & Earnings

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

Gross Revenue EBITDA Price/Earnings Ratio
Party City Holdco $2.33 billion $364.88 million 11.98
Party City Holdco Competitors $3.37 billion $363.72 million 4.34

Party City Holdco’s rivals have higher revenue, but lower earnings than Party City Holdco. Party City Holdco is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of recent ratings and price targets for Party City Holdco and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Party City Holdco 0 2 2 0 2.50
Party City Holdco Competitors 337 930 1059 38 2.34

Party City Holdco presently has a consensus price target of $17.33, suggesting a potential upside of 50.72%. As a group, “Other Specialty Retailers” companies have a potential downside of 7.49%. Given Party City Holdco’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Party City Holdco is more favorable than its rivals.

Institutional and Insider Ownership

61.9% of shares of all “Other Specialty Retailers” companies are held by institutional investors. 5.0% of Party City Holdco shares are held by insiders. Comparatively, 22.7% of shares of all “Other Specialty Retailers” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Party City Holdco beats its rivals on 7 of the 13 factors compared.

About Party City Holdco

Party City Holdco Inc. is a holding company with no operating assets or operations. As of December 31, 2016, the Company owned PC Nextco Holdings, LLC (PC Nextco), which owned PC Intermediate Holdings, Inc. (PC Intermediate). As of December 31, 2016, PC Intermediate owned Party City Holdings Inc. (PCHI). PCHI or its direct or indirect subsidiaries conduct all of its operating businesses. The Company operates through two segments: Retail and Wholesale. Its retail operations generate revenue primarily through the sale of its Amscan, Designware, Anagram and Costumes USA party supplies through its Party City stores, Halloween City stores and PartyCity.com. Its wholesale revenues are generated from the sale of party goods for all occasions, including paper and plastic tableware, accessories and novelties, costumes, metallic and latex balloons and stationery.

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