Financial Analysis: Performance Food Group (PFGC) and Sysco Corporation (SYY)
Performance Food Group (NYSE: PFGC) and Sysco Corporation (NYSE:SYY) are both mid-cap retail/wholesale companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, institutional ownership and risk.
Valuation & Earnings
This table compares Performance Food Group and Sysco Corporation’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Performance Food Group||$16.76 billion||0.18||$342.30 million||$0.93||30.59|
|Sysco Corporation||$55.37 billion||0.51||$3.03 billion||$2.09||25.67|
Sysco Corporation has higher revenue and earnings than Performance Food Group. Sysco Corporation is trading at a lower price-to-earnings ratio than Performance Food Group, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and price targets for Performance Food Group and Sysco Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Performance Food Group||0||6||5||0||2.45|
Performance Food Group currently has a consensus target price of $29.00, suggesting a potential upside of 1.93%. Sysco Corporation has a consensus target price of $56.09, suggesting a potential upside of 4.53%. Given Sysco Corporation’s stronger consensus rating and higher possible upside, analysts clearly believe Sysco Corporation is more favorable than Performance Food Group.
Sysco Corporation pays an annual dividend of $1.32 per share and has a dividend yield of 2.5%. Performance Food Group does not pay a dividend. Sysco Corporation pays out 63.2% of its earnings in the form of a dividend. Performance Food Group has increased its dividend for 46 consecutive years.
Volatility & Risk
Performance Food Group has a beta of -0.28, suggesting that its share price is 128% less volatile than the S&P 500. Comparatively, Sysco Corporation has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500.
This table compares Performance Food Group and Sysco Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Performance Food Group||0.57%||14.73%||3.48%|
Institutional & Insider Ownership
79.1% of Performance Food Group shares are owned by institutional investors. Comparatively, 80.0% of Sysco Corporation shares are owned by institutional investors. 3.5% of Performance Food Group shares are owned by company insiders. Comparatively, 8.8% of Sysco Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Sysco Corporation beats Performance Food Group on 15 of the 17 factors compared between the two stocks.
Performance Food Group Company Profile
Performance Food Group Company, through its subsidiaries, markets and distributes food and food-related products. The Company operates through three segments: Performance Foodservice, PFG Customized and Vistar. The Performance Foodservice segment distributes a range of national brands, customer brands, and branded food and food-related products. It sells to independent or street, and multi-unit or chain, restaurants and other institutions. Its PFG Customized segment provides service to family and casual dining restaurant chains, and fast casual and quick service restaurant chains. Its Vistar segment specializes in distributing candy, snacks, beverages and other items nationally to the vending, office coffee service, theater, hospitality and other channels. Its products include a range of frozen foods, such as meats, fully prepared appetizers and entrees, and desserts; a range of canned and dry foods; fresh meats; dairy products; beverage products, and snack and other products.
Sysco Corporation Company Profile
Sysco Corporation (Sysco) is a distributor of food and related products primarily to the foodservice or food-away-from-home industry. The Company’s segments include Broadline, SYGMA and Other. The Broadline segment includes its Broadline operations located in the Bahamas, Canada, Costa Rica, Ireland, Mexico and the United States. Broadline operating companies distribute a full line of food products and a range of non-food products to both traditional and chain restaurant customers, hospitals, schools, hotels, industrial caterers and other venues where foodservice products are served. SYGMA operating companies distribute a full line of food products and a range of non-food products to certain chain restaurant customer locations. The Other segment includes the Company’s specialty produce; custom-cut meat operations; lodging industry segments; a company that distributes specialty imported products; a company that distributes to international customers, and Sysco Ventures platform.
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