Analyzing Shoprite (SRGHY) and The Competition

Shoprite (OTCMKTS:SRGHY) is one of 143 publicly-traded companies in the “Broadline Retail” industry, but how does it weigh in compared to its peers? We will compare Shoprite to similar businesses based on the strength of its analyst recommendations, institutional ownership, dividends, profitability, earnings, valuation and risk.

Valuation & Earnings

This table compares Shoprite and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Shoprite	N/A	N/A	2.74
Shoprite Competitors	$42.96 billion	$1.70 billion	-219.87

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

Institutional and Insider Ownership

0.0% of Shoprite shares are held by institutional investors. Comparatively, 44.1% of shares of all “Broadline Retail” companies are held by institutional investors. 23.8% of shares of all “Broadline Retail” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Shoprite pays an annual dividend of $4.22 per share and has a dividend yield of 22.1%. Shoprite pays out 60.5% of its earnings in the form of a dividend. As a group, “Broadline Retail” companies pay a dividend yield of 29.8% and pay out 11.5% of their earnings in the form of a dividend. Shoprite lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Ratings

This is a summary of recent ratings for Shoprite and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shoprite	0	0	1	0	3.00
Shoprite Competitors	1373	5347	10765	299	2.56

As a group, “Broadline Retail” companies have a potential upside of 15.19%. Given Shoprite’s peers higher possible upside, analysts plainly believe Shoprite has less favorable growth aspects than its peers.

Profitability

This table compares Shoprite and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shoprite	N/A	N/A	N/A
Shoprite Competitors	-3.42%	-36.20%	-2.63%

Summary

Shoprite peers beat Shoprite on 7 of the 13 factors compared.

About Shoprite

Shoprite Holdings Ltd, an investment holding company, primarily engages in the food retailing business in South Africa and internationally. The company operates through four segments: Supermarkets RSA, Supermarkets Non-RSA, Furniture, and Other Operating segments. It also offers clothing, general merchandise, cosmetics, and liquor products; furniture and home entertainment products; and electrical and household appliances. In addition, the company distributes various pharmaceutical products and surgical equipment to pharmacies, hospitals, clinics, dispensing doctors, and veterinary surgeons. It operates stores under the Shoprite, Checkers, Checkers Hyper, Usave, Checkers Foods, OK Furniture, OK Power Express, House & Home, Shoprite LiquorShop, OK, Checkers LiquorShop, MediRite, Sentra, Megasave, OK Liquor, UNIQ, Petshop Science, Checkers Outdoor, Transpharm, Checkers Little Me, K'nect, Computicket, and Checkers Sixty60 brands. The company also operates franchise stores. Further, the company provides ticketing, and car rental and accommodation services; stadium management, capacity management, travel management, and access control solutions; and credit financing, financial, and treasury management services. Additionally, it invests in properties; and sells products to franchisees under drop-shipment arrangements. Shoprite Holdings Ltd was incorporated in 1936 and is based in Brackenfell, South Africa.