Reviewing Grubhub (GRUB) & Its Peers

Grubhub (NYSE: GRUB) is one of 120 public companies in the “Business services, not elsewhere classified” industry, but how does it weigh in compared to its competitors? We will compare Grubhub to related companies based on the strength of its dividends, valuation, institutional ownership, risk, earnings, profitability and analyst recommendations.

Profitability

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

Net Margins Return on Equity Return on Assets
Grubhub 14.49% 8.29% 6.53%
Grubhub Competitors 5.39% -51.24% 2.19%

Risk & Volatility

Grubhub has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500. Comparatively, Grubhub’s competitors have a beta of 0.66, suggesting that their average share price is 34% less volatile than the S&P 500.

Insider and Institutional Ownership

62.5% of shares of all “Business services, not elsewhere classified” companies are held by institutional investors. 2.4% of Grubhub shares are held by company insiders. Comparatively, 15.7% of shares of all “Business services, not elsewhere classified” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations for Grubhub and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Grubhub 2 12 13 0 2.41
Grubhub Competitors 709 3569 6962 273 2.59

Grubhub presently has a consensus target price of $78.71, suggesting a potential downside of 20.10%. As a group, “Business services, not elsewhere classified” companies have a potential upside of 5.58%. Given Grubhub’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Grubhub has less favorable growth aspects than its competitors.

Valuation and Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Grubhub $683.07 million $98.98 million 100.51
Grubhub Competitors $2.38 billion $315.40 million 13.55

Grubhub’s competitors have higher revenue and earnings than Grubhub. Grubhub 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.

Summary

Grubhub competitors beat Grubhub on 8 of the 13 factors compared.

Grubhub Company Profile

GrubHub Inc., together with its subsidiaries, provides an online and mobile platform for restaurant pick-up and delivery orders in the United States. The company connects approximately 80,000 local restaurants with diners in approximately 1,600 cities. It offers Grubhub, Seamless, and Eat24 mobile applications and mobile Websites for iPhone, Android, iPad, Apple Watch, and Apple TV devices; and operates Grubhub, Seamless, and Eat24 Websites through grubhub.com, seamless.com, and eat24.com. The company also provides corporate program that offers employees with various food and ordering options, including options for individual meals, group ordering, and catering, as well as proprietary tools that consolidate various food ordering into a single online account. In addition, it offers Allmenus.com and MenuPages.com, which provide an aggregated database of approximately 650,000 menus from restaurants in 50 states; Grubhub for Restaurants, a responsive Web application that can be accessed from computers and mobile devices, as well as Grubhub-provided tablets; point of sale (POS) integration, which allows restaurants to manage Grubhub orders and update their menus directly from their existing POS system; and Website design and hosting services for restaurants. The company was formerly known as GrubHub Seamless Inc. and changed its name to GrubHub Inc. in February 2014. GrubHub Inc. was founded in 1999 and is headquartered in Chicago, Illinois.

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