Target (NYSE:TGT – Get Free Report) is one of 149 publicly-traded companies in the “Consumer Staples Distribution & Retail” industry, but how does it contrast to its peers? We will compare Target to similar companies based on the strength of its valuation, profitability, institutional ownership, dividends, analyst recommendations, earnings and risk.
Earnings & Valuation
This table compares Target and its peers top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Target | $104.78 billion | $3.71 billion | 16.42 |
| Target Competitors | $34.73 billion | $846.26 million | 17.25 |
Target has higher revenue and earnings than its peers. Target is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Institutional and Insider Ownership
79.7% of Target shares are owned by institutional investors. Comparatively, 45.0% of shares of all “Consumer Staples Distribution & Retail” companies are owned by institutional investors. 0.1% of Target shares are owned by company insiders. Comparatively, 19.7% of shares of all “Consumer Staples Distribution & Retail” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Target and its peers’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Target | 4.08% | 23.23% | 6.41% |
| Target Competitors | -25.86% | 4.03% | 2.94% |
Analyst Ratings
This is a breakdown of recent ratings and price targets for Target and its peers, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Target | 3 | 17 | 13 | 1 | 2.35 |
| Target Competitors | 2243 | 8275 | 10063 | 459 | 2.42 |
Target presently has a consensus target price of $161.50, suggesting a potential upside of 2.11%. As a group, “Consumer Staples Distribution & Retail” companies have a potential upside of 59.69%. Given Target’s peers stronger consensus rating and higher probable upside, analysts clearly believe Target has less favorable growth aspects than its peers.
Risk & Volatility
Target has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, Target’s peers have a beta of 0.44, indicating that their average stock price is 56% less volatile than the S&P 500.
Dividends
Target pays an annual dividend of $4.64 per share and has a dividend yield of 2.9%. Target pays out 48.2% 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 37.2% of their earnings in the form of a dividend. Target has raised its dividend for 54 consecutive years. Target lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.
Summary
Target beats its peers on 8 of the 15 factors compared.
Target Company Profile
Target Corporation operates as a general merchandise retailer in the United States. The company offers apparel for women, men, boys, girls, toddlers, and infants and newborns, as well as jewelry, accessories, and shoes; and beauty and personal care, baby gear, cleaning, paper products, and pet supplies. It also provides dry grocery, dairy, frozen food, beverages, candy, snacks, deli, bakery, meat, and food service; electronics, which includes video game hardware and software, toys, entertainment, sporting goods, and luggage; and furniture, lighting, storage, kitchenware, small appliances, home decor, bed and bath, home improvement, school/office supplies, greeting cards and party supplies, and other seasonal merchandise. In addition, the company sells merchandise through periodic design and creative partnerships, and shop-in-shop experience; and in-store amenities. Further, it sells its products through its stores; and digital channels, including Target.com. Target Corporation was incorporated in 1902 and is headquartered in Minneapolis, Minnesota.
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