Head to Head Survey: Sysco Corporation (SYY) & Its Peers

Sysco Corporation (NYSE: SYY) is one of 22 publicly-traded companies in the “Food Retail & Distribution” industry, but how does it weigh in compared to its peers? We will compare Sysco Corporation to similar businesses based on the strength of its valuation, profitability, dividends, analyst recommendations, earnings, risk and institutional ownership.

Insider & Institutional Ownership

80.1% of Sysco Corporation shares are owned by institutional investors. Comparatively, 54.2% of shares of all “Food Retail & Distribution” companies are owned by institutional investors. 9.6% of Sysco Corporation shares are owned by insiders. Comparatively, 15.6% of shares of all “Food Retail & Distribution” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for Sysco Corporation and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sysco Corporation 0 7 6 0 2.46
Sysco Corporation Competitors 641 1324 1363 21 2.23

Sysco Corporation presently has a consensus target price of $56.09, indicating a potential upside of 2.36%. As a group, “Food Retail & Distribution” companies have a potential upside of 6.69%. Given Sysco Corporation’s peers higher probable upside, analysts plainly believe Sysco Corporation has less favorable growth aspects than its peers.

Profitability

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

Net Margins Return on Equity Return on Assets
Sysco Corporation 2.06% 53.25% 7.62%
Sysco Corporation Competitors 0.84% 7.10% 4.20%

Risk & Volatility

Sysco Corporation has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500. Comparatively, Sysco Corporation’s peers have a beta of 0.94, suggesting that their average stock price is 6% less volatile than the S&P 500.

Earnings & Valuation

This table compares Sysco Corporation and its peers revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Sysco Corporation $55.37 billion $3.03 billion 26.22
Sysco Corporation Competitors $22.59 billion $1.07 billion 31.75

Sysco Corporation has higher revenue and earnings than its peers. Sysco Corporation 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.

Dividends

Sysco Corporation pays an annual dividend of $1.32 per share and has a dividend yield of 2.4%. Sysco Corporation pays out 63.2% of its earnings in the form of a dividend. As a group, “Food Retail & Distribution” companies pay a dividend yield of 2.5% and pay out 151.9% of their earnings in the form of a dividend. Sysco Corporation has increased its dividend for 46 consecutive years.

Summary

Sysco Corporation beats its peers on 9 of the 15 factors compared.

About Sysco Corporation

Sysco Corporation (Sysco) is a distributor of food and related products primarily to the foodservice or food-away-from-home industry. The Company’s segments include Broadline, SYGMA and Other. The Broadline segment includes its Broadline operations located in the Bahamas, Canada, Costa Rica, Ireland, Mexico and the United States. Broadline operating companies distribute a full line of food products and a range of non-food products to both traditional and chain restaurant customers, hospitals, schools, hotels, industrial caterers and other venues where foodservice products are served. SYGMA operating companies distribute a full line of food products and a range of non-food products to certain chain restaurant customer locations. The Other segment includes the Company’s specialty produce; custom-cut meat operations; lodging industry segments; a company that distributes specialty imported products; a company that distributes to international customers, and Sysco Ventures platform.

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