Critical Comparison: Grocery Outlet (GO) vs. Its Competitors

Grocery Outlet (NASDAQ: GO) is one of 48 public companies in the “Grocery stores” industry, but how does it weigh in compared to its competitors? We will compare Grocery Outlet to related companies based on the strength of its earnings, valuation, analyst recommendations, institutional ownership, profitability, risk and dividends.

Volatility & Risk

Grocery Outlet has a beta of -0.18, suggesting that its stock price is 118% less volatile than the S&P 500. Comparatively, Grocery Outlet’s competitors have a beta of 0.38, suggesting that their average stock price is 62% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Grocery Outlet 2.58% 9.62% 3.63%
Grocery Outlet Competitors 1.82% 21.75% 4.64%

Valuation & Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Grocery Outlet $3.13 billion $106.71 million 36.19
Grocery Outlet Competitors $22.97 billion $442.89 million 8.68

Grocery Outlet’s competitors have higher revenue and earnings than Grocery Outlet. Grocery Outlet 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.

Analyst Recommendations

This is a summary of current ratings and price targets for Grocery Outlet and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Grocery Outlet 0 5 2 0 2.29
Grocery Outlet Competitors 1103 2613 2664 82 2.27

Grocery Outlet currently has a consensus target price of $30.71, indicating a potential upside of 6.09%. As a group, “Grocery stores” companies have a potential upside of 19.05%. Given Grocery Outlet’s competitors higher probable upside, analysts clearly believe Grocery Outlet has less favorable growth aspects than its competitors.

Insider and Institutional Ownership

95.1% of Grocery Outlet shares are owned by institutional investors. Comparatively, 56.8% of shares of all “Grocery stores” companies are owned by institutional investors. 11.8% of Grocery Outlet shares are owned by company insiders. Comparatively, 17.5% of shares of all “Grocery stores” companies are owned 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.

Summary

Grocery Outlet competitors beat Grocery Outlet on 9 of the 13 factors compared.

About Grocery Outlet

Grocery Outlet Holding Corp. engages in the operation of retail stores in the United States. It offers name-brand consumables and fresh products through a network of independently operated stores. The company was founded by Jim Read in 1946 and is headquartered in Emeryville, CA.

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