PriceSmart (PSMT) versus The Competition Critical Analysis

PriceSmart (NASDAQ: PSMT) is one of 12 publicly-traded companies in the “Variety stores” industry, but how does it contrast to its rivals? We will compare PriceSmart to related businesses based on the strength of its analyst recommendations, profitability, valuation, institutional ownership, risk, earnings and dividends.

Earnings & Valuation

How to Become a New Pot Stock Millionaire

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

Gross Revenue Net Income Price/Earnings Ratio
PriceSmart $3.00 billion $90.72 million 29.66
PriceSmart Competitors $65.63 billion $1.74 billion 21.78

PriceSmart’s rivals have higher revenue and earnings than PriceSmart. PriceSmart 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.

Risk & Volatility

PriceSmart has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500. Comparatively, PriceSmart’s rivals have a beta of 0.89, meaning that their average share price is 11% less volatile than the S&P 500.

Dividends

PriceSmart pays an annual dividend of $0.70 per share and has a dividend yield of 0.8%. PriceSmart pays out 23.5% of its earnings in the form of a dividend. As a group, “Variety stores” companies pay a dividend yield of 1.6% and pay out 36.6% of their earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent ratings and target prices for PriceSmart and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PriceSmart 0 3 2 0 2.40
PriceSmart Competitors 163 1266 1707 91 2.53

PriceSmart presently has a consensus price target of $91.67, suggesting a potential upside of 3.70%. As a group, “Variety stores” companies have a potential upside of 3.99%. Given PriceSmart’s rivals stronger consensus rating and higher probable upside, analysts plainly believe PriceSmart has less favorable growth aspects than its rivals.

Institutional and Insider Ownership

78.0% of PriceSmart shares are owned by institutional investors. Comparatively, 76.5% of shares of all “Variety stores” companies are owned by institutional investors. 28.0% of PriceSmart shares are owned by company insiders. Comparatively, 13.9% of shares of all “Variety stores” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
PriceSmart 2.45% 12.29% 7.43%
PriceSmart Competitors 3.76% 15.00% 6.64%

Summary

PriceSmart rivals beat PriceSmart on 9 of the 15 factors compared.

About PriceSmart

PriceSmart, Inc. owns and operates the U.S.-style membership shopping warehouse clubs in Latin America and the Caribbean. The company's warehouse clubs offer brand name and private label consumer goods to individuals and businesses. As of October 26, 2017, it operated 40 warehouse clubs comprising 7 each in Colombia and Costa Rica; 5 in Panama; 4 in Trinidad; 3 each in Guatemala, Honduras, and the Dominican Republic; 2 in El Salvador and Nicaragua; and 1 each in Aruba, Barbados, Jamaica, and the United States Virgin Islands. PriceSmart, Inc. was founded in 1994 and is headquartered in San Diego, California.

Receive News & Ratings for PriceSmart Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for PriceSmart and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply