Shoprite (OTCMKTS:SRGHY – Get Free Report) is one of 143 publicly-traded companies in the “Broadline Retail” industry, but how does it weigh in compared to its competitors? We will compare Shoprite to similar companies based on the strength of its profitability, analyst recommendations, earnings, valuation, institutional ownership, dividends and risk.
Dividends
Shoprite pays an annual dividend of $4.22 per share and has a dividend yield of 22.8%. 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 32.4% and pay out 11.5% of their earnings in the form of a dividend. Shoprite lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.
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, large money managers and hedge funds believe a company will outperform the market over the long term.
Earnings & Valuation
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Shoprite | N/A | N/A | 2.65 |
| Shoprite Competitors | $41.84 billion | $1.70 billion | -219.65 |
Shoprite’s competitors have higher revenue and earnings than Shoprite. Shoprite is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
Analyst Recommendations
This is a summary of current recommendations and price targets for Shoprite and its competitors, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Shoprite | 0 | 0 | 1 | 0 | 3.00 |
| Shoprite Competitors | 1372 | 5338 | 10757 | 298 | 2.56 |
As a group, “Broadline Retail” companies have a potential upside of 14.21%. Given Shoprite’s competitors higher probable upside, analysts plainly believe Shoprite has less favorable growth aspects than its competitors.
Profitability
This table compares Shoprite and its competitors’ 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 | -3.45% | -36.11% | -2.58% |
Summary
Shoprite competitors 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.
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