Analyzing Performance Food Group (PFGC) and Diplomat Pharmacy (DPLO)

Performance Food Group (NYSE: PFGC) and Diplomat Pharmacy (NYSE:DPLO) are both retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, institutional ownership, risk and analyst recommendations.

Volatility & Risk

Performance Food Group has a beta of -0.28, suggesting that its stock price is 128% less volatile than the S&P 500. Comparatively, Diplomat Pharmacy has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500.

Profitability

This table compares Performance Food Group and Diplomat Pharmacy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Performance Food Group 0.57% 14.73% 3.48%
Diplomat Pharmacy 0.27% 7.97% 4.47%

Insider & Institutional Ownership

79.1% of Performance Food Group shares are held by institutional investors. Comparatively, 69.9% of Diplomat Pharmacy shares are held by institutional investors. 3.5% of Performance Food Group shares are held by company insiders. Comparatively, 35.4% of Diplomat Pharmacy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Performance Food Group and Diplomat Pharmacy, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Performance Food Group 0 6 5 0 2.45
Diplomat Pharmacy 1 8 2 0 2.09

Performance Food Group currently has a consensus price target of $29.00, indicating a potential upside of 1.93%. Diplomat Pharmacy has a consensus price target of $17.89, indicating a potential downside of 9.08%. Given Performance Food Group’s stronger consensus rating and higher probable upside, analysts clearly believe Performance Food Group is more favorable than Diplomat Pharmacy.

Valuation and Earnings

This table compares Performance Food Group and Diplomat Pharmacy’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Performance Food Group $16.76 billion 0.18 $342.30 million $0.93 30.59
Diplomat Pharmacy $4.53 billion 0.30 $70.47 million $0.17 115.76

Performance Food Group has higher revenue and earnings than Diplomat Pharmacy. Performance Food Group is trading at a lower price-to-earnings ratio than Diplomat Pharmacy, indicating that it is currently the more affordable of the two stocks.

Summary

Performance Food Group beats Diplomat Pharmacy on 9 of the 14 factors compared between the two stocks.

Performance Food Group Company Profile

Performance Food Group Company, through its subsidiaries, markets and distributes food and food-related products. The Company operates through three segments: Performance Foodservice, PFG Customized and Vistar. The Performance Foodservice segment distributes a range of national brands, customer brands, and branded food and food-related products. It sells to independent or street, and multi-unit or chain, restaurants and other institutions. Its PFG Customized segment provides service to family and casual dining restaurant chains, and fast casual and quick service restaurant chains. Its Vistar segment specializes in distributing candy, snacks, beverages and other items nationally to the vending, office coffee service, theater, hospitality and other channels. Its products include a range of frozen foods, such as meats, fully prepared appetizers and entrees, and desserts; a range of canned and dry foods; fresh meats; dairy products; beverage products, and snack and other products.

Diplomat Pharmacy Company Profile

Diplomat Pharmacy, Inc. (Diplomat) operates a specialty pharmacy business, which stocks, dispenses and distributes prescriptions for various biotechnology and specialty pharmaceutical manufacturers. The Company operates through specialty pharmacy services segment. The Company’s primary focus is on medication management programs for individuals with chronic diseases, including oncology, immunology, hepatitis, multiple sclerosis, specialty infusion therapy, and various other serious and/or long-term conditions. The Company provides specialty pharmacy support services to a national network of retailers and independent pharmacy groups, hospitals and health systems. The Company offers various services, such as specialty drug dispensing, retail specialty services, hospital and health system services, and hub services. The Company’s patient care system is used to coordinate and track patient adherence and safety.

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