Financial Comparison: Metcash (MCSHF) versus Its Rivals

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

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Metcash	N/A	N/A	9.32
Metcash Competitors	$34.19 billion	$827.08 million	17.83

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

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 4.0% and pay out 37.3% of their earnings in the form of a dividend.

Profitability

This table compares Metcash and its peers’ 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	-25.70%	1.46%	2.27%

Insider and Institutional Ownership

29.0% of Metcash shares are held by institutional investors. Comparatively, 45.0% of shares of all “Consumer Staples Distribution & Retail” companies are held by institutional investors. 19.7% of shares of all “Consumer Staples Distribution & Retail” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings for Metcash and its peers, 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	2221	8180	9919	448	2.41

As a group, “Consumer Staples Distribution & Retail” companies have a potential upside of 59.47%. Given Metcash’s peers stronger consensus rating and higher probable upside, analysts clearly believe Metcash has less favorable growth aspects than its peers.

Summary

Metcash peers 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.