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

Risk and Volatility

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

Profitability

This table compares Nutrisystem and its competitors’ 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 -0.90% -1,896.84% -2.37%

Institutional & Insider Ownership

51.5% of shares of all “Catalog & mail-order houses” companies are held by institutional investors. 2.4% of Nutrisystem shares are held by insiders. Comparatively, 34.4% of shares of all “Catalog & mail-order houses” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Nutrisystem and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Nutrisystem $696.96 million $57.87 million 14.57
Nutrisystem Competitors $13.26 billion $328.86 million 35.59

Nutrisystem’s competitors have higher revenue and earnings than Nutrisystem. Nutrisystem is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

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.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Nutrisystem and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nutrisystem 0 2 6 0 2.75
Nutrisystem Competitors 108 511 1923 49 2.74

Nutrisystem presently has a consensus target price of $56.50, suggesting a potential upside of 97.90%. As a group, “Catalog & mail-order houses” companies have a potential upside of 4.72%. Given Nutrisystem’s stronger consensus rating and higher probable upside, research analysts plainly believe Nutrisystem is more favorable than its competitors.

Summary

Nutrisystem competitors beat Nutrisystem on 8 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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