GNC Holdings (NYSE: GNC) is one of 23 publicly-traded companies in the “Food Retail & Distribution” industry, but how does it weigh in compared to its peers? We will compare GNC Holdings to similar businesses based off the strength of its valuation, profitability, dividends, analyst recommendations, earnings, risk and institutional ownership.

Insider & Institutional Ownership

65.5% of GNC Holdings shares are owned by institutional investors. Comparatively, 56.0% of shares of all “Food Retail & Distribution” companies are owned by institutional investors. 1.9% of GNC Holdings shares are owned by insiders. Comparatively, 17.7% of shares of all “Food Retail & Distribution” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

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

Gross Revenue EBITDA Price/Earnings Ratio
GNC Holdings $2.48 billion $278.86 million -1.65
GNC Holdings Competitors $21.30 billion $992.13 million 37.13

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

Dividends

GNC Holdings pays an annual dividend of $0.40 per share and has a dividend yield of 4.6%. GNC Holdings pays out -7.5% of its earnings in the form of a dividend. As a group, “Food Retail & Distribution” companies pay a dividend yield of 2.6% and pay out 150.4% of their earnings in the form of a dividend. GNC Holdings has increased its dividend for 4 consecutive years. GNC Holdings is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Risk & Volatility

GNC Holdings has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500. Comparatively, GNC Holdings’ peers have a beta of 0.93, suggesting that their average stock price is 7% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for GNC Holdings and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GNC Holdings 5 2 0 0 1.29
GNC Holdings Competitors 695 1409 1398 22 2.21

GNC Holdings presently has a consensus target price of $8.42, indicating a potential downside of 3.81%. All “Food Retail & Distribution” companies have a potential upside of 1.75%. Given GNC Holdings’ peers stronger consensus rating and higher probable upside, analysts plainly believe GNC Holdings has less favorable growth aspects than its peers.

Profitability

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

Net Margins Return on Equity Return on Assets
GNC Holdings -14.56% 285.93% 4.49%
GNC Holdings Competitors 0.46% 32.13% 3.58%

Summary

GNC Holdings peers beat GNC Holdings on 9 of the 14 factors compared.

GNC Holdings Company Profile

GNC Holdings, Inc. is a specialty retailer of health, wellness and performance products, which include protein, performance supplements, weight management supplements, vitamins, herbs and greens, wellness supplements, health and beauty, food and drink and other general merchandise. The Company’s operations consist of purchasing raw materials, formulating and manufacturing products and selling the finished products. It operates in three segments: U.S. and Canada, International and Manufacturing/Wholesale. Its U.S. and Canada segment generates revenues primarily from sales of products to customers at its Company-owned stores in the United States, Canada and Puerto Rico, through its Websites, GNC.com and LuckyVitamin.com. Its International segment generates revenue primarily to its international franchisees. Its Manufacturing/Wholesale segment comprises its manufacturing operations in South Carolina and its wholesale partner relationships.

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