Sysco Corporation (NYSE:SYY) and Its Competitors Head-To-Head Review

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

Institutional and Insider Ownership

80.1% of Sysco Corporation shares are owned by institutional investors. Comparatively, 54.1% of shares of all “Food Retail & Distribution” companies are owned by institutional investors. 9.6% of Sysco Corporation shares are owned by company insiders. Comparatively, 15.6% 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 stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and price targets for Sysco Corporation and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sysco Corporation 0 7 6 0 2.46
Sysco Corporation Competitors 614 1297 1222 20 2.21

Sysco Corporation presently has a consensus target price of $56.09, suggesting a potential upside of 3.51%. As a group, “Food Retail & Distribution” companies have a potential upside of 9.77%. Given Sysco Corporation’s rivals higher possible upside, analysts plainly believe Sysco Corporation has less favorable growth aspects than its rivals.

Valuation and Earnings

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

Gross Revenue NetIncome Price/Earnings Ratio
Sysco Corporation $55.37 billion $1.14 billion 24.63
Sysco Corporation Competitors $21.01 billion $343.54 million 475.59

Sysco Corporation has higher revenue and earnings than its rivals. Sysco Corporation 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Sysco Corporation 2.12% 58.47% 7.68%
Sysco Corporation Competitors 0.62% 5.49% 3.51%

Dividends

Sysco Corporation pays an annual dividend of $1.32 per share and has a dividend yield of 2.4%. Sysco Corporation pays out 60.0% of its earnings in the form of a dividend. As a group, “Food Retail & Distribution” companies pay a dividend yield of 2.6% and pay out 161.2% of their earnings in the form of a dividend. Sysco Corporation has raised its dividend for 46 consecutive years.

Volatility and Risk

Sysco Corporation has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500. Comparatively, Sysco Corporation’s rivals have a beta of 0.97, suggesting that their average share price is 3% less volatile than the S&P 500.

Summary

Sysco Corporation beats its rivals on 9 of the 15 factors compared.

About Sysco Corporation

Sysco Corporation (Sysco) is a distributor of food and related products primarily to the foodservice or food-away-from-home industry. The Company’s segments include Broadline, SYGMA and Other. The Broadline segment includes its Broadline operations located in the Bahamas, Canada, Costa Rica, Ireland, Mexico and the United States. Broadline operating companies distribute a full line of food products and a range of non-food products to both traditional and chain restaurant customers, hospitals, schools, hotels, industrial caterers and other venues where foodservice products are served. SYGMA operating companies distribute a full line of food products and a range of non-food products to certain chain restaurant customer locations. The Other segment includes the Company’s specialty produce; custom-cut meat operations; lodging industry segments; a company that distributes specialty imported products; a company that distributes to international customers, and Sysco Ventures platform.

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