Critical Survey: GNC Holdings (GNC) vs. Its Rivals
GNC Holdings (NYSE: GNC) is one of 23 public companies in the “Food Retail & Distribution” industry, but how does it weigh in compared to its rivals? We will compare GNC Holdings to similar businesses based on the strength of its profitability, institutional ownership, dividends, valuation, earnings, analyst recommendations and risk.
Institutional and Insider Ownership
65.5% of GNC Holdings shares are owned by institutional investors. Comparatively, 56.1% of shares of all “Food Retail & Distribution” companies are owned by institutional investors. 1.9% of GNC Holdings shares are owned by company insiders. Comparatively, 17.7% of shares of all “Food Retail & Distribution” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Valuation & Earnings
This table compares GNC Holdings and its rivals revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|GNC Holdings||$2.48 billion||$278.86 million||-1.80|
|GNC Holdings Competitors||$21.37 billion||$977.24 million||37.71|
GNC Holdings’ rivals have higher revenue and earnings than GNC Holdings. GNC Holdings is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
This table compares GNC Holdings and its rivals’ 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 pays an annual dividend of $0.40 per share and has a dividend yield of 4.2%. 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 rivals, given its higher yield and lower payout ratio.
Volatility & Risk
GNC Holdings has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500. Comparatively, GNC Holdings’ rivals have a beta of 0.93, indicating that their average share price is 7% less volatile than the S&P 500.
This is a breakdown of recent ratings and target prices for GNC Holdings and its rivals, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|GNC Holdings Competitors||702||1424||1407||22||2.21|
GNC Holdings presently has a consensus target price of $8.42, suggesting a potential downside of 11.87%. As a group, “Food Retail & Distribution” companies have a potential upside of 5.07%. Given GNC Holdings’ rivals stronger consensus rating and higher possible upside, analysts plainly believe GNC Holdings has less favorable growth aspects than its rivals.
GNC Holdings rivals beat GNC Holdings on 10 of the 15 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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