Sysco Corporation (NYSE: SYY) is one of 22 publicly-traded companies in the “Food Retail & Distribution” industry, but how does it contrast to its competitors? We will compare Sysco Corporation to similar businesses based on the strength of its risk, profitability, analyst recommendations, institutional ownership, valuation, dividends and earnings.

Analyst Recommendations

This is a summary of recent ratings and price targets for Sysco Corporation and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sysco Corporation 0 7 6 0 2.46
Sysco Corporation Competitors 645 1342 1395 21 2.23

Sysco Corporation presently has a consensus price target of $56.09, suggesting a potential upside of 2.96%. As a group, “Food Retail & Distribution” companies have a potential upside of 9.59%. Given Sysco Corporation’s competitors higher probable upside, analysts clearly believe Sysco Corporation has less favorable growth aspects than its competitors.

Profitability

This table compares Sysco Corporation and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sysco Corporation 2.12% 58.47% 7.68%
Sysco Corporation Competitors 0.71% 6.78% 3.97%

Earnings and Valuation

This table compares Sysco Corporation and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Sysco Corporation $55.37 billion $1.14 billion 24.88
Sysco Corporation Competitors $21.17 billion $332.40 million 543.13

Sysco Corporation has higher revenue and earnings than its competitors. Sysco Corporation is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Dividends

Sysco Corporation pays an annual dividend of $1.32 per share and has a dividend yield of 2.4%. Sysco Corporation pays out 60.3% of its earnings in the form of a dividend. As a group, “Food Retail & Distribution” companies pay a dividend yield of 1.9% and pay out 62.0% of their earnings in the form of a dividend. Sysco Corporation has increased its dividend for 46 consecutive years. Sysco Corporation is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

80.3% of Sysco Corporation shares are owned by institutional investors. Comparatively, 59.2% of shares of all “Food Retail & Distribution” companies are owned by institutional investors. 9.6% of Sysco Corporation shares are owned by insiders. Comparatively, 14.0% of shares of all “Food Retail & Distribution” companies are owned by 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.

Risk and Volatility

Sysco Corporation has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500. Comparatively, Sysco Corporation’s competitors have a beta of 0.94, indicating that their average share price is 6% less volatile than the S&P 500.

Summary

Sysco Corporation beats its competitors on 10 of the 15 factors compared.

Sysco Corporation Company Profile

Sysco Corporation (Sysco) is a distributor of food and related products primarily to the foodservice or food-away-from-home industry. The Company’s segments include Broadline, SYGMA and Other. The Broadline segment includes its Broadline operations located in the Bahamas, Canada, Costa Rica, Ireland, Mexico and the United States. Broadline operating companies distribute a full line of food products and a range of non-food products to both traditional and chain restaurant customers, hospitals, schools, hotels, industrial caterers and other venues where foodservice products are served. SYGMA operating companies distribute a full line of food products and a range of non-food products to certain chain restaurant customer locations. The Other segment includes the Company’s specialty produce; custom-cut meat operations; lodging industry segments; a company that distributes specialty imported products; a company that distributes to international customers, and Sysco Ventures platform.

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