Financial Review: Diplomat Pharmacy (DPLO) vs. Delhaize Group SA (DEG)
Diplomat Pharmacy (NYSE: DPLO) and Delhaize Group SA (NYSE:DEG) are both retail/wholesale companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, profitability and dividends.
Delhaize Group SA pays an annual dividend of $0.35 per share and has a dividend yield of 1.2%. Diplomat Pharmacy does not pay a dividend. Delhaize Group SA pays out 29.4% of its earnings in the form of a dividend.
Valuation & Earnings
This table compares Diplomat Pharmacy and Delhaize Group SA’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Diplomat Pharmacy||$4.53 billion||0.27||$70.47 million||$0.17||105.00|
|Delhaize Group SA||N/A||N/A||N/A||$1.19||23.62|
Diplomat Pharmacy has higher revenue and earnings than Delhaize Group SA. Delhaize Group SA is trading at a lower price-to-earnings ratio than Diplomat Pharmacy, indicating that it is currently the more affordable of the two stocks.
This table compares Diplomat Pharmacy and Delhaize Group SA’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Delhaize Group SA||1.77%||7.11%||3.43%|
Risk and Volatility
Diplomat Pharmacy has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500. Comparatively, Delhaize Group SA has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500.
Institutional and Insider Ownership
69.9% of Diplomat Pharmacy shares are owned by institutional investors. 35.4% of Diplomat Pharmacy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This is a summary of recent recommendations for Diplomat Pharmacy and Delhaize Group SA, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Delhaize Group SA||0||0||0||0||N/A|
Diplomat Pharmacy presently has a consensus price target of $17.89, indicating a potential upside of 0.24%. Given Diplomat Pharmacy’s higher probable upside, equities analysts clearly believe Diplomat Pharmacy is more favorable than Delhaize Group SA.
Diplomat Pharmacy beats Delhaize Group SA on 8 of the 12 factors compared between the two stocks.
Diplomat Pharmacy Company Profile
Diplomat Pharmacy, Inc. (Diplomat) operates a specialty pharmacy business, which stocks, dispenses and distributes prescriptions for various biotechnology and specialty pharmaceutical manufacturers. The Company operates through specialty pharmacy services segment. The Company’s primary focus is on medication management programs for individuals with chronic diseases, including oncology, immunology, hepatitis, multiple sclerosis, specialty infusion therapy, and various other serious and/or long-term conditions. The Company provides specialty pharmacy support services to a national network of retailers and independent pharmacy groups, hospitals and health systems. The Company offers various services, such as specialty drug dispensing, retail specialty services, hospital and health system services, and hub services. The Company’s patient care system is used to coordinate and track patient adherence and safety.
Delhaize Group SA Company Profile
Delhaize le Lion de Leeuw BV (Belgium Branch), formerly Delhaize Group SA, is a Belgium-based food retailer. The Company operates through three segments: the United States, including Food Lion and Hannaford banners; Belgium, including Delhaize Le Lion and AD Delhaize banners, and Southeastern Europe (SEE), including Alfa Beta, Mega Image and Shop&Go banners. The Company is principally engaged in the operation of food supermarkets through Company-operated, affiliated and franchised stores. Affiliated stores are with its banners that are operated by independent third parties to whom the Company sells its products at wholesale prices. Its store network also includes other store formats, such as proximity, cash and carry, and specialty stores. The Company has stores located in the United States (Northeast, Southeast and Mid-Atlantic), Belgium, Luxembourg, Greece, Serbia, Romania and Indonesia. The Company operates over 3,510 stores.
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