Nutrisystem (NTRI) and Its Competitors Financial Review

Nutrisystem (NASDAQ: NTRI) is one of 20 publicly-traded companies in the “Catalog & mail-order houses” industry, but how does it weigh in compared to its peers? We will compare Nutrisystem to similar companies based on the strength of its analyst recommendations, dividends, earnings, valuation, institutional ownership, profitability and risk.

Insider & Institutional Ownership

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51.8% of shares of all “Catalog & mail-order houses” companies are held by institutional investors. 2.4% of Nutrisystem shares are held by insiders. Comparatively, 35.8% of shares of all “Catalog & mail-order houses” companies are held by 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 Ratings

This is a breakdown of recent ratings and recommmendations for Nutrisystem and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nutrisystem 0 3 6 0 2.67
Nutrisystem Competitors 107 502 1897 48 2.74

Nutrisystem presently has a consensus target price of $56.89, suggesting a potential upside of 98.57%. As a group, “Catalog & mail-order houses” companies have a potential upside of 7.54%. Given Nutrisystem’s higher possible upside, research analysts plainly believe Nutrisystem is more favorable than its peers.

Profitability

This table compares Nutrisystem and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nutrisystem 8.30% 48.69% 31.00%
Nutrisystem Competitors -0.91% -1,897.02% -2.41%

Risk & Volatility

Nutrisystem has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500. Comparatively, Nutrisystem’s peers have a beta of 1.72, indicating that their average share price is 72% more volatile than the S&P 500.

Dividends

Nutrisystem pays an annual dividend of $1.00 per share and has a dividend yield of 3.5%. Nutrisystem pays out 51.0% of its earnings in the form of a dividend. As a group, “Catalog & mail-order houses” companies pay a dividend yield of 1.9% and pay out 31.5% of their earnings in the form of a dividend.

Earnings & Valuation

This table compares Nutrisystem and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Nutrisystem $696.96 million $57.87 million 14.62
Nutrisystem Competitors $13.26 billion $329.84 million 35.77

Nutrisystem’s peers have higher revenue and earnings than Nutrisystem. Nutrisystem 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.

Summary

Nutrisystem peers beat Nutrisystem on 10 of the 15 factors compared.

About Nutrisystem

Nutrisystem, Inc., together with its subsidiaries, provides weight management products and services for women and men in the United States. The company offers weight loss programs that consist primarily of a pre-packaged food program, digital tools, and counseling. It also provides Nutrisystem Lean13 program, which provides weight loss, and support and counseling services; the South Beach Diet, a weight-loss program; and Nutrisystem 5-day kit, a ?D' kit that offers individuals with or at risk of type 2 diabetes. In addition, the company provides SmartCarb and PowerFuel products, including meal replacement bars, powder shakes, baked goods and snacks; and Nutrisystem D Program, a weight loss program designed to produce gradual weight loss. It sells its pre-packaged foods to weight loss program participants directly through the Internet and telephone; a television shopping network; and retailers. Nutrisystem, Inc. was founded in 1972 and is headquartered in Fort Washington, Pennsylvania.

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