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How Does Rite Aid’s Performance Compare to Its Peers?

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Sep. 18 2015, Published 11:21 a.m. ET

Rite Aid compared to its peers

An analysis of Rite Aid’s income statement in 2Q16 follows:

  • The gross profit margins of Rite Aid Corporation (RAD), CVS Health (CVS), Vitamin Shoppe (VSI), and Walgreens Boots Alliance (WBA) are 25.07%, 17.22%, 33.59%, and 25.98%, respectively.
  • The diluted EPS (earnings per share) of Rite Aid, CVS Health, Vitamin Shoppe, and Walmart (WMT) are $0.02, $1.12, $0.52, and $1.08, respectively.

An analysis of Rite Aid’s balance sheet in 2Q16 follows:

  • The current ratios of Rite Aid, CVS Health, Vitamin Shoppe, and Walgreens Boots Alliance (WBA) are 1.50, 1.30, 2.21, and 1.30, respectively.

An analysis of Rite Aid’s valuation follows:

  • The PE (price-to-earnings) ratios of Rite Aid, CVS Health, Vitamin Shoppe, Walgreens Boots Alliance, and Walmart are 3.72x, 24.35x, 17.96x, 23.87x, and 13.48x, respectively.

According to the above findings, Rite Aid’s peers outperformed the company based on gross profit, diluted EPS, and the PE ratio.

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ETFs that invest in Rite Aid

The First Trust Consumer Staples AlphaDEX ETF (FXG) invests 4.48% of its holdings in Rite Aid. FXG tracks an index of large and mid-cap US consumer staples stocks. The underlying index uses multifactor selection and a tiered equal weighting.

The PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ) invests 3.63% of its holdings in Rite Aid. PEZ tracks an index of US consumer cyclical firms selected and weighted by price momentum.

The SPDR S&P Retail ETF (XRT) invests 1.23% of its holdings in Rite Aid. XRT tracks a broad-based, equal-weighted index of stocks in the US retail industry.

Rite Aid compared to its ETFs

An analysis of Rite Aid’s price movement follows:

  • The YTD (year-to-date) price movements of Rite Aid, FXG, PEZ, and XRT are 1.86%, 4.66%, 7.27%, and -50.67%, respectively.

An analysis of Rite Aid’s valuation follows:

  • The PE ratios of Rite Aid, FXG, PEZ, and XRT are 3.72x, 20.39x, 22.04x, and 27.12x, respectively.

The ETFs outperformed Rite Aid based on the PE ratio and price movement.

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