Grocery Outlet (GO) and The Competition Critical Review

Grocery Outlet (NASDAQ:GO) is one of 149 publicly-traded companies in the “Consumer Staples Distribution & Retail” industry, but how does it contrast to its rivals? We will compare Grocery Outlet to related companies based on the strength of its dividends, institutional ownership, valuation, profitability, risk, analyst recommendations and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Grocery Outlet	-8.04%	5.84%	1.79%
Grocery Outlet Competitors	-25.88%	3.76%	2.96%

Insider & Institutional Ownership

99.9% of Grocery Outlet shares are owned by institutional investors. Comparatively, 45.0% of shares of all “Consumer Staples Distribution & Retail” companies are owned by institutional investors. 5.6% of Grocery Outlet shares are owned by insiders. Comparatively, 19.7% of shares of all “Consumer Staples Distribution & Retail” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Grocery Outlet	$4.69 billion	-$224.91 million	-3.36
Grocery Outlet Competitors	$34.75 billion	$846.26 million	16.63

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

Volatility and Risk

Grocery Outlet has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500. Comparatively, Grocery Outlet’s rivals have a beta of 0.44, indicating that their average share price is 56% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Grocery Outlet and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grocery Outlet	2	11	1	0	1.93
Grocery Outlet Competitors	2242	8271	10041	459	2.41

Grocery Outlet currently has a consensus price target of $10.50, suggesting a potential downside of 19.31%. As a group, “Consumer Staples Distribution & Retail” companies have a potential upside of 55.91%. Given Grocery Outlet’s rivals stronger consensus rating and higher possible upside, analysts plainly believe Grocery Outlet has less favorable growth aspects than its rivals.

Summary

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

About Grocery Outlet

Grocery Outlet Holding Corp. operates as a retailer of consumables and fresh products sold through independently operated stores in the United States. Its stores offer products in various categories, such as dairy and deli, produce, floral, fresh meat, seafood products, grocery, general merchandise, health and beauty care, frozen food, beer and wine, and ethnic products. The company was founded in 1946 and is headquartered in Emeryville, California.