Comparing Target (TGT) & Its Competitors

Target (NYSE: TGT) is one of 12 publicly-traded companies in the “Variety stores” industry, but how does it contrast to its rivals? We will compare Target to similar businesses based on the strength of its profitability, dividends, risk, analyst recommendations, earnings, valuation and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
Target 4.08% 23.04% 6.71%
Target Competitors 3.76% 15.00% 6.64%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Target and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Target 1 11 8 0 2.35
Target Competitors 164 1265 1701 90 2.53

Target presently has a consensus price target of $73.11, suggesting a potential upside of 1.54%. As a group, “Variety stores” companies have a potential upside of 3.50%. Given Target’s rivals stronger consensus rating and higher possible upside, analysts plainly believe Target has less favorable growth aspects than its rivals.

Valuation & Earnings

This table compares Target and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Target $71.88 billion $2.93 billion 15.29
Target Competitors $65.63 billion $1.74 billion 22.12

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

Insider and Institutional Ownership

87.0% of Target shares are held by institutional investors. Comparatively, 76.5% of shares of all “Variety stores” companies are held by institutional investors. 0.2% of Target shares are held by insiders. Comparatively, 13.8% of shares of all “Variety stores” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk & Volatility

Target has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500. Comparatively, Target’s rivals have a beta of 0.89, indicating that their average stock price is 11% less volatile than the S&P 500.

Dividends

Target pays an annual dividend of $2.48 per share and has a dividend yield of 3.4%. Target pays out 52.7% of its earnings in the form of a dividend. As a group, “Variety stores” companies pay a dividend yield of 1.6% and pay out 36.6% of their earnings in the form of a dividend. Target has increased its dividend for 50 consecutive years.

Summary

Target rivals beat Target 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 beauty and household essentials, including beauty products, personal and baby care products, cleaning products, paper products, and pet supplies; food and beverage products, such as dry grocery, dairy, frozen food, beverage, candy, snacks, deli, bakery, meat, and produce products; and apparel for women, men, boys, girls, toddlers, infants, and newborns, as well as intimate apparel, jewelry, accessories, and shoes. It also provides home furnishings and d茅cor comprising furniture, lighting, kitchenware, small appliances, home d茅cor, bed and bath products, home improvement products, and automotive products, as well as seasonal merchandise comprising patio furniture and holiday d茅cor; and music, movies, books, computer software, sporting goods, and toys, as well as electronics that include video game hardware and software. In addition, the company offers in-store amenities, which comprise Target Caf茅, Target Optical, Starbucks, and other food service offerings. It sells its products through its stores; and digital channels, including Target.com. As of March 8, 2018, the company operated 1,826 stores. Target Corporation was founded in 1902 and is headquartered in Minneapolis, Minnesota.