Diplomat Pharmacy (DPLO) versus Its Peers Critical Contrast

Diplomat Pharmacy (NYSE: DPLO) is one of 23 publicly-traded companies in the “Food Retail & Distribution” industry, but how does it compare to its rivals? We will compare Diplomat Pharmacy to similar businesses based on the strength of its earnings, risk, analyst recommendations, dividends, profitability, institutional ownership and valuation.

Risk & Volatility

Diplomat Pharmacy has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500. Comparatively, Diplomat Pharmacy’s rivals have a beta of 0.93, suggesting that their average stock price is 7% less volatile than the S&P 500.

Institutional and Insider Ownership

69.9% of Diplomat Pharmacy shares are held by institutional investors. Comparatively, 56.2% of shares of all “Food Retail & Distribution” companies are held by institutional investors. 30.2% of Diplomat Pharmacy shares are held by company insiders. Comparatively, 17.1% of shares of all “Food Retail & Distribution” companies 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 Ratings

This is a breakdown of current ratings for Diplomat Pharmacy and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Diplomat Pharmacy 1 8 3 0 2.17
Diplomat Pharmacy Competitors 644 1344 1391 22 2.23

Diplomat Pharmacy currently has a consensus target price of $19.16, suggesting a potential downside of 11.19%. As a group, “Food Retail & Distribution” companies have a potential upside of 4.09%. Given Diplomat Pharmacy’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Diplomat Pharmacy has less favorable growth aspects than its rivals.

Profitability

This table compares Diplomat Pharmacy and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Diplomat Pharmacy 0.27% 7.97% 4.47%
Diplomat Pharmacy Competitors 0.80% 32.79% 4.17%

Valuation & Earnings

This table compares Diplomat Pharmacy and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Diplomat Pharmacy $4.53 billion $70.47 million 126.88
Diplomat Pharmacy Competitors $21.46 billion $1.01 billion 39.04

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

Summary

Diplomat Pharmacy rivals beat Diplomat Pharmacy on 10 of the 13 factors compared.

About Diplomat Pharmacy

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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