Diplomat Pharmacy (NYSE: DPLO) is one of 23 public companies in the “Food Retail & Distribution” industry, but how does it compare to its peers? We will compare Diplomat Pharmacy to related companies based on the strength of its institutional ownership, dividends, profitability, risk, earnings, analyst recommendations and valuation.

Institutional and Insider Ownership

69.9% of Diplomat Pharmacy shares are held by institutional investors. Comparatively, 62.7% of shares of all “Food Retail & Distribution” companies are held by institutional investors. 30.2% of Diplomat Pharmacy shares are held by insiders. Comparatively, 19.2% of shares of all “Food Retail & Distribution” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Diplomat Pharmacy has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500. Comparatively, Diplomat Pharmacy’s peers have a beta of 0.93, indicating that their average share price is 7% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Diplomat Pharmacy and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Diplomat Pharmacy 1 8 3 0 2.17
Diplomat Pharmacy Competitors 708 1438 1423 22 2.21

Diplomat Pharmacy presently has a consensus target price of $18.66, indicating a potential downside of 12.21%. As a group, “Food Retail & Distribution” companies have a potential upside of 2.81%. Given Diplomat Pharmacy’s peers stronger consensus rating and higher probable upside, analysts plainly believe Diplomat Pharmacy has less favorable growth aspects than its peers.

Profitability

This table compares Diplomat Pharmacy and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Diplomat Pharmacy 0.27% 7.97% 4.47%
Diplomat Pharmacy Competitors 0.82% 32.88% 4.20%

Earnings and Valuation

This table compares Diplomat Pharmacy and its peers gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Diplomat Pharmacy $4.53 billion $70.47 million 125.00
Diplomat Pharmacy Competitors $21.39 billion $989.23 million 38.90

Diplomat Pharmacy’s peers have higher revenue and earnings than Diplomat Pharmacy. Diplomat Pharmacy is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

Diplomat Pharmacy peers beat Diplomat Pharmacy on 9 of the 13 factors compared.

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.

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