Critical Contrast: GNC Holdings (GNC) and Its Competitors
GNC Holdings (NYSE: GNC) is one of 23 publicly-traded companies in the “Food Retail & Distribution” industry, but how does it contrast to its peers? We will compare GNC Holdings to related companies based on the strength of its valuation, earnings, profitability, dividends, institutional ownership, risk and analyst recommendations.
This is a summary of recent recommendations for GNC Holdings and its peers, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|GNC Holdings Competitors||702||1425||1408||22||2.21|
GNC Holdings presently has a consensus price target of $8.42, suggesting a potential downside of 17.16%. As a group, “Food Retail & Distribution” companies have a potential upside of 4.06%. Given GNC Holdings’ peers stronger consensus rating and higher possible upside, analysts plainly believe GNC Holdings has less favorable growth aspects than its peers.
Volatility & Risk
GNC Holdings has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500. Comparatively, GNC Holdings’ peers have a beta of 0.93, meaning that their average stock price is 7% less volatile than the S&P 500.
Insider and Institutional Ownership
65.5% of GNC Holdings shares are held by institutional investors. Comparatively, 56.1% of shares of all “Food Retail & Distribution” companies are held by institutional investors. 1.9% of GNC Holdings shares are held by insiders. Comparatively, 17.7% of shares of all “Food Retail & Distribution” 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.
GNC Holdings pays an annual dividend of $0.40 per share and has a dividend yield of 3.9%. 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 raised 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.
Valuation and Earnings
This table compares GNC Holdings and its peers gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|GNC Holdings||$2.48 billion||$278.86 million||-1.92|
|GNC Holdings Competitors||$21.37 billion||$977.24 million||37.93|
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 more affordable than other companies in its industry.
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 Competitors||0.82%||32.88%||4.20%|
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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