Target (NYSE: TGT) is one of 12 public companies in the “Variety stores” industry, but how does it weigh in compared to its peers? We will compare Target to similar businesses based on the strength of its dividends, institutional ownership, risk, profitability, valuation, earnings and analyst recommendations.
Volatility & Risk
Target has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, Target’s peers have a beta of 0.89, meaning that their average share price is 11% less volatile than the S&P 500.
Target pays an annual dividend of $2.48 per share and has a dividend yield of 3.5%. Target pays out 52.7% 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 36.2% of their earnings in the form of a dividend. Target has raised its dividend for 50 consecutive years.
Valuation & Earnings
This table compares Target and its peers revenue, earnings per share (EPS) and valuation.
Target has higher revenue and earnings than its peers. Target 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.
Insider & Institutional Ownership
87.0% of Target shares are held by institutional investors. Comparatively, 76.5% of shares of all “Variety stores” companies are held by institutional investors. 0.2% of Target shares are held by company insiders. Comparatively, 13.8% of shares of all “Variety stores” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This is a breakdown of recent recommendations for Target and its peers, as reported by MarketBeat.
||Strong Buy Ratings
Target currently has a consensus target price of $74.12, indicating a potential upside of 3.69%. As a group, “Variety stores” companies have a potential upside of 6.07%. Given Target’s peers stronger consensus rating and higher probable upside, analysts clearly believe Target has less favorable growth aspects than its peers.
This table compares Target and its peers’ net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Target peers beat Target on 8 of the 15 factors compared.
Target Company Profile
Target Corporation operates as a general merchandise retailer in the United States. The company offers beauty and household essentials, including beauty products, personal and baby care products, cleaning products, paper products, and pet supplies; food and beverage products, such as dry grocery, dairy, frozen food, beverage, candy, snacks, deli, bakery, meat, and produce products; and apparel for women, men, boys, girls, toddlers, infants, and newborns, as well as intimate apparel, jewelry, accessories, and shoes. It also provides home furnishings and décor comprising furniture, lighting, kitchenware, small appliances, home décor, bed and bath products, home improvement products, and automotive products, as well as seasonal merchandise comprising patio furniture and holiday décor; and music, movies, books, computer software, sporting goods, and toys, as well as electronics that include video game hardware and software. In addition, the company offers in-store amenities, which comprise Target Café, Target Optical, Starbucks, and other food service offerings. It sells its products through its stores; and digital channels, including Target.com. As of March 8, 2018, the company operated 1,826 stores. Target Corporation was founded in 1902 and is headquartered in Minneapolis, Minnesota.
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