Diplomat Pharmacy (DPLO) vs. Its Peers Financial Review

Diplomat Pharmacy (NYSE: DPLO) is one of 23 publicly-traded companies in the “Food Retail & Distribution” industry, but how does it compare to its peers? We will compare Diplomat Pharmacy to similar companies based on the strength of its analyst recommendations, dividends, valuation, institutional ownership, earnings, profitability and risk.

Insider & Institutional Ownership

69.9% of Diplomat Pharmacy shares are held by institutional investors. Comparatively, 62.7% of shares of all “Food Retail & Distribution” companies are held by institutional investors. 30.2% of Diplomat Pharmacy shares are held by insiders. Comparatively, 19.3% of shares of all “Food Retail & Distribution” 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.

Profitability

This table compares Diplomat Pharmacy and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Diplomat Pharmacy 0.27% 7.97% 4.47%
Diplomat Pharmacy Competitors 0.80% 32.79% 4.17%

Valuation and Earnings

This table compares Diplomat Pharmacy and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Diplomat Pharmacy $4.53 billion $70.47 million 124.18
Diplomat Pharmacy Competitors $21.46 billion $1.01 billion 39.11

Diplomat Pharmacy’s peers have higher revenue and earnings than Diplomat Pharmacy. Diplomat Pharmacy is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of recent recommendations for Diplomat Pharmacy and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Diplomat Pharmacy 1 8 3 0 2.17
Diplomat Pharmacy Competitors 645 1345 1393 23 2.23

Diplomat Pharmacy currently has a consensus price target of $19.16, indicating a potential downside of 9.26%. As a group, “Food Retail & Distribution” companies have a potential upside of 5.86%. Given Diplomat Pharmacy’s peers stronger consensus rating and higher possible upside, analysts clearly believe Diplomat Pharmacy has less favorable growth aspects than its peers.

Risk and Volatility

Diplomat Pharmacy has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500. Comparatively, Diplomat Pharmacy’s peers have a beta of 0.93, suggesting that their average share price is 7% less volatile than the S&P 500.

Summary

Diplomat Pharmacy peers beat Diplomat Pharmacy on 10 of the 13 factors compared.

About Diplomat Pharmacy

Diplomat Pharmacy, Inc. (Diplomat) operates a specialty pharmacy business, which stocks, dispenses and distributes prescriptions for various biotechnology and specialty pharmaceutical manufacturers. The Company operates through specialty pharmacy services segment. The Company’s primary focus is on medication management programs for individuals with chronic diseases, including oncology, immunology, hepatitis, multiple sclerosis, specialty infusion therapy, and various other serious and/or long-term conditions. The Company provides specialty pharmacy support services to a national network of retailers and independent pharmacy groups, hospitals and health systems. The Company offers various services, such as specialty drug dispensing, retail specialty services, hospital and health system services, and hub services. The Company’s patient care system is used to coordinate and track patient adherence and safety.

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