Analyzing Metcash (MCSHF) & Its Competitors

Metcash (OTCMKTS:MCSHF) is one of 150 public companies in the “Consumer Staples Distribution & Retail” industry, but how does it compare to its rivals? We will compare Metcash to similar companies based on the strength of its valuation, dividends, earnings, analyst recommendations, institutional ownership, profitability and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Metcash	N/A	N/A	N/A
Metcash Competitors	-28.43%	1.55%	2.00%

Dividends

Metcash pays an annual dividend of $0.26 per share and has a dividend yield of 14.5%. Metcash pays out 135.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Consumer Staples Distribution & Retail” companies pay a dividend yield of 3.7% and pay out 37.5% of their earnings in the form of a dividend.

Analyst Ratings

This is a summary of current ratings and recommmendations for Metcash and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Metcash	0	1	0	0	2.00
Metcash Competitors	2204	8087	9790	444	2.41

As a group, “Consumer Staples Distribution & Retail” companies have a potential upside of 52.80%. Given Metcash’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Metcash has less favorable growth aspects than its rivals.

Valuation and Earnings

This table compares Metcash and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Metcash	N/A	N/A	9.32
Metcash Competitors	$34.15 billion	$827.71 million	18.79

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

Institutional & Insider Ownership

29.0% of Metcash shares are owned by institutional investors. Comparatively, 45.0% of shares of all “Consumer Staples Distribution & Retail” companies are owned by institutional investors. 19.7% of shares of all “Consumer Staples Distribution & Retail” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Metcash rivals beat Metcash on 11 of the 13 factors compared.

About Metcash

Metcash Limited operates as a wholesale distribution and marketing company in Australia. It operates through Food, Liquor, and Hardware segments. The Food segment distributes a range of products and services to independent supermarket and convenience retail outlets. The Hardware segment distributes hardware products to independent retail outlets; and operates company owned retail stores. The Liquor segment engages in the distribution of liquor products to independent retail outlets and hotels. It sells its products under the IGA, Foodland, Mitre 10, Home Hardware, Total Tools, Cellarbrations, IGA Liquor, and the Bottle-O brand names. Metcash Limited was founded in 1927 and is based in Macquarie Park, Australia.