Contrasting Nutrisystem (NTRI) & Its Rivals

Nutrisystem (NASDAQ: NTRI) is one of 20 publicly-traded companies in the “Catalog & mail-order houses” industry, but how does it contrast to its rivals? We will compare Nutrisystem to related companies based on the strength of its valuation, institutional ownership, dividends, earnings, analyst recommendations, risk and profitability.

Volatility and Risk

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Nutrisystem has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500. Comparatively, Nutrisystem’s rivals have a beta of 1.72, meaning that their average stock price is 72% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Nutrisystem and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nutrisystem 0 3 6 0 2.67
Nutrisystem Competitors 106 503 1898 49 2.74

Nutrisystem presently has a consensus target price of $56.89, suggesting a potential upside of 96.51%. As a group, “Catalog & mail-order houses” companies have a potential upside of 4.67%. Given Nutrisystem’s higher probable upside, analysts plainly believe Nutrisystem is more favorable than its rivals.

Dividends

Nutrisystem pays an annual dividend of $1.00 per share and has a dividend yield of 3.5%. Nutrisystem pays out 51.0% of its earnings in the form of a dividend. As a group, “Catalog & mail-order houses” companies pay a dividend yield of 1.8% and pay out 31.5% of their earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
Nutrisystem 8.30% 48.69% 31.00%
Nutrisystem Competitors -0.91% -1,897.02% -2.41%

Valuation and Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Nutrisystem $696.96 million $57.87 million 14.77
Nutrisystem Competitors $13.26 billion $329.84 million 36.98

Nutrisystem’s rivals have higher revenue and earnings than Nutrisystem. Nutrisystem 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.

Institutional and Insider Ownership

57.2% of shares of all “Catalog & mail-order houses” companies are held by institutional investors. 2.0% of Nutrisystem shares are held by company insiders. Comparatively, 29.6% of shares of all “Catalog & mail-order houses” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Nutrisystem rivals beat Nutrisystem on 10 of the 15 factors compared.

Nutrisystem Company Profile

Nutrisystem, Inc., together with its subsidiaries, provides weight management products and services for women and men in the United States. The company offers weight loss programs that consist primarily of a pre-packaged food program, digital tools, and counseling. It also provides Nutrisystem Lean13 program, which provides weight loss, and support and counseling services; the South Beach Diet, a weight-loss program; and Nutrisystem 5-day kit, a ?D' kit that offers individuals with or at risk of type 2 diabetes. In addition, the company provides SmartCarb and PowerFuel products, including meal replacement bars, powder shakes, baked goods and snacks; and Nutrisystem D Program, a weight loss program designed to produce gradual weight loss. It sells its pre-packaged foods to weight loss program participants directly through the Internet and telephone; a television shopping network; and retailers. Nutrisystem, Inc. was founded in 1972 and is headquartered in Fort Washington, Pennsylvania.

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