Rite Aid (NYSE:RAD) and Dougherty’s Pharmacy (OTCMKTS:MYDP) are both small-cap retail/wholesale companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, profitability, risk, earnings, institutional ownership, analyst recommendations and dividends.
Earnings and Valuation
This table compares Rite Aid and Dougherty’s Pharmacy’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Rite Aid||$21.53 billion||0.06||$943.47 million||($0.02)||-64.50|
|Dougherty’s Pharmacy||$40.21 million||0.02||-$2.10 million||N/A||N/A|
This table compares Rite Aid and Dougherty’s Pharmacy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and target prices for Rite Aid and Dougherty’s Pharmacy, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Rite Aid presently has a consensus price target of $2.11, indicating a potential upside of 63.34%. Given Rite Aid’s higher possible upside, analysts clearly believe Rite Aid is more favorable than Dougherty’s Pharmacy.
Insider & Institutional Ownership
55.3% of Rite Aid shares are held by institutional investors. Comparatively, 0.5% of Dougherty’s Pharmacy shares are held by institutional investors. 2.1% of Rite Aid shares are held by insiders. Comparatively, 27.3% of Dougherty’s Pharmacy shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Volatility and Risk
Rite Aid has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500. Comparatively, Dougherty’s Pharmacy has a beta of -0.58, indicating that its share price is 158% less volatile than the S&P 500.
Rite Aid beats Dougherty’s Pharmacy on 9 of the 10 factors compared between the two stocks.
About Rite Aid
Rite Aid Corporation, through its subsidiaries, operates a chain of retail drugstores in the United States. It operates through two segments, Retail Pharmacy and Pharmacy Services. The Retail Pharmacy segment sells prescription drugs and a range of other merchandise, including over-the-counter medications, health and beauty aids, personal care items, cosmetics, household items, food and beverages, greeting cards, seasonal merchandise, and other every day and convenience products. It also operates retail clinics that provide treatment for common conditions; and a range of preventive services comprising screenings, medical tests, immunizations, and basic physical exams. In addition, this segment offers healthcare coaching and disease management services. The Pharmacy Services segment provides pharmacy benefit management (PBM) services and a range of pharmacy-related services. This segment also performs prescription adjudication services for other PBMs; and offers integrated mail-order, specialty and compounding pharmacy, and infertility treatment services, as well as drug benefits under the federal government's Medicare Part D program. As of April 12, 2018, the company operated approximately 2,548 stores in 19 states. Rite Aid Corporation was founded in 1927 and is headquartered in Camp Hill, Pennsylvania.
About Dougherty’s Pharmacy
Dougherty's Pharmacy, Inc., an investment firm, focuses on acquiring, managing, and growing community based pharmacies in the Southwest Region of the United States. Its flagship store is Dougherty's Pharmacy, a turn-key multi-service pharmacy located in Dallas, Texas. The company was formerly known as Ascendant Solutions, Inc. and changed its name to Dougherty's Pharmacy, Inc. in May 2017. Dougherty's Pharmacy, Inc. was founded in 1998 and is based in Dallas, Texas.
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