PetMed Express (PETS) vs. Rite Aid Corporation (RAD) Head to Head Analysis

Rite Aid Corporation (NYSE: RAD) and PetMed Express (NASDAQ:PETS) are both retail/wholesale companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, dividends, analyst recommendations, profitabiliy, valuation and risk.

Risk and Volatility

Rite Aid Corporation has a beta of 1.87, meaning that its share price is 87% more volatile than the S&P 500. Comparatively, PetMed Express has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Rite Aid Corporation and PetMed Express, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rite Aid Corporation	2	3	2	0	2.00
PetMed Express	1	2	1	0	2.00

Rite Aid Corporation presently has a consensus price target of $4.19, suggesting a potential upside of 83.85%. PetMed Express has a consensus price target of $33.50, suggesting a potential downside of 30.74%. Given Rite Aid Corporation’s higher possible upside, equities research analysts clearly believe Rite Aid Corporation is more favorable than PetMed Express.

Dividends

PetMed Express pays an annual dividend of $0.80 per share and has a dividend yield of 1.7%. Rite Aid Corporation does not pay a dividend. PetMed Express pays out 61.5% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Rite Aid Corporation and PetMed Express’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	EBITDA	Earnings Per Share	Price/Earnings Ratio
Rite Aid Corporation	$32.44 billion	0.07	$999.93 million	($0.07)	-32.57
PetMed Express	$256.35 million	3.83	$43.21 million	$1.30	37.21

Rite Aid Corporation has higher revenue and earnings than PetMed Express. Rite Aid Corporation is trading at a lower price-to-earnings ratio than PetMed Express, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

56.8% of Rite Aid Corporation shares are held by institutional investors. Comparatively, 78.6% of PetMed Express shares are held by institutional investors. 2.3% of Rite Aid Corporation shares are held by company insiders. Comparatively, 4.0% of PetMed Express shares are held 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.

Profitability

This table compares Rite Aid Corporation and PetMed Express’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rite Aid Corporation	-0.21%	0.52%	0.03%
PetMed Express	10.34%	28.67%	24.50%

Summary

PetMed Express beats Rite Aid Corporation on 8 of the 14 factors compared between the two stocks.

About Rite Aid Corporation

Rite Aid Corporation is a retail drugstore chain. The Company’s segments include Retail Pharmacy and Pharmacy Services. The Company operates under The Rite Aid name. It operates approximately 4,560 stores in over 30 states across the country and in the District of Columbia. The Company’s Retail Pharmacy segment consists of Rite Aid stores, RediClinic and Health Dialog. It sells brand and generic prescription drugs, as well as an assortment of front-end products, including health and beauty aids, personal care products, seasonal merchandise, and a private brand product line. Its front-end products include over-the-counter medications, health and beauty aids, personal care items, cosmetics, household items, food and beverages, greeting cards, seasonal merchandise and numerous other everyday and convenience products. The Company’s Pharmacy Services segment consists of EnvisionRx, which provides a range of pharmacy benefit services.

About PetMed Express

PetMed Express, Inc. (PetMed Express), doing business as 1800PetMeds, is a pet pharmacy. The Company markets prescription and non-prescription pet medications, and other health products for dogs and cats, direct to the consumer. It offers a selection of products for dogs and cats. Its product line contains approximately 3,000 stock keeping units (SKUS) of pet medications, health products and supplies. Its products include brands of medication, such as Frontline Plus, K9 Advantix II, Advantage II, Heartgard Plus, Sentinel, Revolution and Rimadyl. It also offers additional pet supplies for sale on its Website, which are drop shipped to its customers by third parties. These pet supplies include food, beds, crates, stairs, strollers and other pet supplies. Its products included Non-Prescription Medications (Over the Counter (OTC)) and supplies, and Prescription Medications (Rx). Its customers are located in California, Florida, Texas, New York, Virginia and Georgia, among others.