Analyzing Sysco (SYY) and Its Rivals

Sysco (NYSE:SYY – Get Free Report) is one of 149 publicly-traded companies in the “Consumer Staples Distribution & Retail” industry, but how does it contrast to its rivals? We will compare Sysco to similar businesses based on the strength of its dividends, valuation, earnings, institutional ownership, risk, analyst recommendations and profitability.

Earnings and Valuation

This table compares Sysco and its rivals top-line revenue, earnings per share and valuation.

Sysco has higher revenue and earnings than its rivals. Sysco is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Institutional and Insider Ownership

83.4% of Sysco shares are held by institutional investors. Comparatively, 45.0% of shares of all “Consumer Staples Distribution & Retail” companies are held by institutional investors. 0.6% of Sysco shares are held by company insiders. Comparatively, 19.7% of shares of all “Consumer Staples Distribution & Retail” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Sysco and its rivals’ net margins, return on equity and return on assets.

Analyst Ratings

This is a summary of current recommendations for Sysco and its rivals, as reported by MarketBeat.com.

Sysco presently has a consensus price target of $90.42, indicating a potential upside of 9.13%. As a group, “Consumer Staples Distribution & Retail” companies have a potential upside of 60.07%. Given Sysco’s rivals higher probable upside, analysts clearly believe Sysco has less favorable growth aspects than its rivals.

Dividends

Sysco pays an annual dividend of $2.20 per share and has a dividend yield of 2.7%. Sysco pays out 60.1% of its earnings in the form of a dividend. As a group, “Consumer Staples Distribution & Retail” companies pay a dividend yield of 3.8% and pay out 36.7% of their earnings in the form of a dividend. Sysco has raised its dividend for 57 consecutive years. Sysco lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Risk and Volatility

Sysco has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500. Comparatively, Sysco’s rivals have a beta of 0.43, meaning that their average stock price is 57% less volatile than the S&P 500.

Summary

Sysco beats its rivals on 10 of the 15 factors compared.

Sysco Company Profile

(Get Free Report)

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.

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