Sysco (NYSE:SYY) versus PriceSmart (NASDAQ:PSMT) Head-To-Head Survey

Sysco (NYSE:SYY – Get Free Report) and PriceSmart (NASDAQ:PSMT – Get Free Report) are both consumer staples companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, dividends, profitability, institutional ownership, earnings and analyst recommendations.

Risk and Volatility

Sysco has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500. Comparatively, PriceSmart has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500.

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Earnings & Valuation

This table compares Sysco and PriceSmart”s revenue, earnings per share and valuation.

Sysco has higher revenue and earnings than PriceSmart. Sysco is trading at a lower price-to-earnings ratio than PriceSmart, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Sysco and PriceSmart’s net margins, return on equity and return on assets.

Analyst Ratings

This is a summary of recent recommendations and price targets for Sysco and PriceSmart, as provided by MarketBeat.com.

Sysco currently has a consensus price target of $89.50, suggesting a potential upside of 9.06%. PriceSmart has a consensus price target of $198.00, suggesting a potential upside of 16.81%. Given PriceSmart’s stronger consensus rating and higher possible upside, analysts clearly believe PriceSmart is more favorable than Sysco.

Dividends

Sysco pays an annual dividend of $2.20 per share and has a dividend yield of 2.7%. PriceSmart pays an annual dividend of $1.40 per share and has a dividend yield of 0.8%. Sysco pays out 60.1% of its earnings in the form of a dividend. PriceSmart pays out 26.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Sysco has raised its dividend for 57 consecutive years and PriceSmart has raised its dividend for 4 consecutive years. Sysco is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

83.4% of Sysco shares are held by institutional investors. Comparatively, 80.5% of PriceSmart shares are held by institutional investors. 0.6% of Sysco shares are held by company insiders. Comparatively, 17.0% of PriceSmart shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

PriceSmart beats Sysco on 9 of the 17 factors compared between the two stocks.

About Sysco

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Sysco Corporation, through its subsidiaries, engages in the marketing and distribution of various food and related products to the foodservice or food-away-from-home industry in the United States, Canada, the United Kingdom, France, and internationally. It operates through U.S. Foodservice Operations, International Foodservice Operations, SYGMA, and Other segments. The company distributes frozen food, such as meat, seafood, fully prepared entrées, fruits, vegetables, and desserts; canned and dry food products; fresh meat and seafood products; dairy products; beverages; imported specialties; and fresh produce products. It also supplies various non-food items, including paper products comprising disposable napkins, plates, and cups; tableware consisting of glassware and silverware; cookware, such as pots, pans, and utensils; restaurant and kitchen equipment and supplies; and cleaning supplies. The company serves restaurants, hospitals and nursing facilities, schools and colleges, hotels and motels, industrial caterers, and other foodservice venues. Sysco Corporation was incorporated in 1969 and is headquartered in Houston, Texas.

About PriceSmart

(Get Free Report)

PriceSmart, Inc. owns and operates U.S.-style membership shopping warehouse clubs in the United States, Central America, the Caribbean, and Colombia. The company provides basic and private label consumer products under the Member's Selection brand, including groceries, cleaning supplies, health and beauty aids, meat, produce, deli, seafood, and poultry. It offers electronics, large and small appliances, automotive, hardware, sporting goods, seasonal products, clothing, domestics, and home furnishing products. In addition, the company offers food and bakery services, as well as health services, such as optical, audiology, and pharmacy. Further, it operates an e-commerce platform for online ordering, curbside pickup, and delivery services. PriceSmart, Inc. was incorporated in 1994 and is headquartered in San Diego, California.

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