Financial Review: Party City Holdco (PRTY) & Its Rivals
Party City Holdco (NYSE: PRTY) is one of 21 public companies in the “Other Specialty Retailers” industry, but how does it contrast to its competitors? We will compare Party City Holdco to similar businesses based on the strength of its dividends, institutional ownership, risk, valuation, earnings, profitability and analyst recommendations.
Volatility and Risk
Party City Holdco has a beta of 2.66, suggesting that its share price is 166% more volatile than the S&P 500. Comparatively, Party City Holdco’s competitors have a beta of 1.24, suggesting that their average share price is 24% more volatile than the S&P 500.
Institutional and Insider Ownership
61.9% of shares of all “Other Specialty Retailers” companies are owned by institutional investors. 5.0% of Party City Holdco shares are owned by insiders. Comparatively, 22.7% of shares of all “Other Specialty Retailers” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This is a breakdown of recent recommendations and price targets for Party City Holdco and its competitors, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Party City Holdco||0||2||2||0||2.50|
|Party City Holdco Competitors||334||927||1056||38||2.34|
Party City Holdco currently has a consensus price target of $17.33, indicating a potential upside of 41.50%. As a group, “Other Specialty Retailers” companies have a potential downside of 9.64%. Given Party City Holdco’s stronger consensus rating and higher probable upside, equities analysts clearly believe Party City Holdco is more favorable than its competitors.
This table compares Party City Holdco and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Party City Holdco||4.97%||13.97%||4.09%|
|Party City Holdco Competitors||22.63%||-19.26%||6.43%|
Earnings & Valuation
This table compares Party City Holdco and its competitors top-line revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Party City Holdco||$2.33 billion||$364.88 million||12.76|
|Party City Holdco Competitors||$3.37 billion||$363.72 million||5.21|
Party City Holdco’s competitors have higher revenue, but lower earnings than Party City Holdco. Party City Holdco is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
Party City Holdco beats its competitors on 7 of the 13 factors compared.
Party City Holdco Company Profile
Party City Holdco Inc. is a holding company with no operating assets or operations. As of December 31, 2016, the Company owned PC Nextco Holdings, LLC (PC Nextco), which owned PC Intermediate Holdings, Inc. (PC Intermediate). As of December 31, 2016, PC Intermediate owned Party City Holdings Inc. (PCHI). PCHI or its direct or indirect subsidiaries conduct all of its operating businesses. The Company operates through two segments: Retail and Wholesale. Its retail operations generate revenue primarily through the sale of its Amscan, Designware, Anagram and Costumes USA party supplies through its Party City stores, Halloween City stores and PartyCity.com. Its wholesale revenues are generated from the sale of party goods for all occasions, including paper and plastic tableware, accessories and novelties, costumes, metallic and latex balloons and stationery.
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