1-800-PetMeds (PETS) vs. Walgreens Boots Alliance (WBA) Financial Analysis

1-800-PetMeds (NASDAQ: PETS) and Walgreens Boots Alliance (NASDAQ:WBA) are both retail/wholesale companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.

Dividends

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1-800-PetMeds pays an annual dividend of $1.00 per share and has a dividend yield of 2.6%. Walgreens Boots Alliance pays an annual dividend of $1.60 per share and has a dividend yield of 2.5%. 1-800-PetMeds pays out 85.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Walgreens Boots Alliance pays out 31.4% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares 1-800-PetMeds and Walgreens Boots Alliance’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
1-800-PetMeds $249.18 million 3.16 $23.81 million $1.17 32.67
Walgreens Boots Alliance $118.21 billion 0.54 $4.08 billion $5.10 12.51

Walgreens Boots Alliance has higher revenue and earnings than 1-800-PetMeds. Walgreens Boots Alliance is trading at a lower price-to-earnings ratio than 1-800-PetMeds, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for 1-800-PetMeds and Walgreens Boots Alliance, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
1-800-PetMeds 1 2 2 0 2.20
Walgreens Boots Alliance 0 9 12 0 2.57

1-800-PetMeds presently has a consensus target price of $41.00, indicating a potential upside of 7.27%. Walgreens Boots Alliance has a consensus target price of $83.84, indicating a potential upside of 31.37%. Given Walgreens Boots Alliance’s stronger consensus rating and higher possible upside, analysts plainly believe Walgreens Boots Alliance is more favorable than 1-800-PetMeds.

Institutional and Insider Ownership

91.3% of 1-800-PetMeds shares are owned by institutional investors. Comparatively, 60.9% of Walgreens Boots Alliance shares are owned by institutional investors. 4.0% of 1-800-PetMeds shares are owned by company insiders. Comparatively, 14.8% of Walgreens Boots Alliance shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk & Volatility

1-800-PetMeds has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500. Comparatively, Walgreens Boots Alliance has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500.

Profitability

This table compares 1-800-PetMeds and Walgreens Boots Alliance’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
1-800-PetMeds 12.84% 34.04% 27.74%
Walgreens Boots Alliance 3.33% 20.38% 8.42%

Summary

Walgreens Boots Alliance beats 1-800-PetMeds on 9 of the 16 factors compared between the two stocks.

1-800-PetMeds Company Profile

PetMed Express, Inc. and its subsidiaries, doing business as 1-800-PetMeds, operates as a pet pharmacy in the United States. The company markets prescription and non-prescription pet medications, health products, and supplies for dogs and cats to retail customers. It provides non-prescription medications and supplies, such as flea and tick control products, bone and joint care products, vitamins, treats, nutritional supplements, hygiene products, and supplies; and prescription medications, including heartworm preventatives, flea and tick preventatives, arthritis, thyroid, diabetes, pain medications, antibiotics, and other specialty medications, as well as generic substitutes. The company also sells food, beds, crates, stairs, strollers, and other pet supplies through its Website. It markets its products through Internet; telephone contact center; and direct mail/print through 1-800-PetMeds catalogs, brochures, and postcards under various brands. PetMed Express, Inc. was founded in 1996 and is headquartered in Delray Beach, Florida.

Walgreens Boots Alliance Company Profile

Walgreens Boots Alliance, Inc. (Walgreens Boots Alliance) is a holding company. The Company is a global pharmacy-led, health and wellbeing enterprise. Walgreens Boots Alliance operates through three divisions, including Retail Pharmacy USA, Retail Pharmacy International and Pharmaceutical Wholesale. The Company’s products are marketed under a number of brands, which include No7, the Botanics range, Almus (generic medicines), Boots Pharmaceuticals and Soap & Glory (bathing and beauty brand). In addition, the Company has investments in Guangzhou Pharmaceuticals Corporation and Nanjing Pharmaceutical Company Limited. The Company operates in around 25 countries, which include the wholesale and distribution network with over 340 distribution centers and more than 180,000 pharmacies, health centers and hospitals in 19 countries.

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