PriceSmart (PSMT) vs. The Competition Financial Survey

PriceSmart (NASDAQ: PSMT) is one of 12 public companies in the “Variety stores” industry, but how does it contrast to its competitors? We will compare PriceSmart to related companies based on the strength of its profitability, analyst recommendations, dividends, institutional ownership, risk, valuation and earnings.

Valuation and Earnings

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This table compares PriceSmart and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
PriceSmart $3.00 billion $90.72 million 30.45
PriceSmart Competitors $65.63 billion $1.74 billion 22.24

PriceSmart’s competitors have higher revenue and earnings than PriceSmart. PriceSmart is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Insider & Institutional Ownership

78.0% of PriceSmart shares are owned by institutional investors. Comparatively, 76.5% of shares of all “Variety stores” companies are owned by institutional investors. 28.0% of PriceSmart shares are owned by insiders. Comparatively, 13.8% of shares of all “Variety stores” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

PriceSmart has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500. Comparatively, PriceSmart’s competitors have a beta of 0.89, meaning that their average stock price is 11% less volatile than the S&P 500.

Profitability

This table compares PriceSmart and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PriceSmart 2.45% 12.29% 7.43%
PriceSmart Competitors 3.76% 15.00% 6.64%

Analyst Recommendations

This is a breakdown of current ratings and target prices for PriceSmart and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PriceSmart 0 3 2 0 2.40
PriceSmart Competitors 164 1265 1701 90 2.53

PriceSmart currently has a consensus target price of $91.67, suggesting a potential upside of 1.01%. As a group, “Variety stores” companies have a potential upside of 2.40%. Given PriceSmart’s competitors stronger consensus rating and higher probable upside, analysts clearly believe PriceSmart has less favorable growth aspects than its competitors.

Dividends

PriceSmart pays an annual dividend of $0.70 per share and has a dividend yield of 0.8%. PriceSmart pays out 23.5% 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 36.6% of their earnings in the form of a dividend.

Summary

PriceSmart competitors beat PriceSmart on 9 of the 15 factors compared.

PriceSmart Company Profile

PriceSmart, Inc. owns and operates the U.S.-style membership shopping warehouse clubs in Latin America and the Caribbean. The company's warehouse clubs offer brand name and private label consumer goods to individuals and businesses. As of October 26, 2017, it operated 40 warehouse clubs comprising 7 each in Colombia and Costa Rica; 5 in Panama; 4 in Trinidad; 3 each in Guatemala, Honduras, and the Dominican Republic; 2 in El Salvador and Nicaragua; and 1 each in Aruba, Barbados, Jamaica, and the United States Virgin Islands. PriceSmart, Inc. was founded in 1994 and is headquartered in San Diego, California.

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