How Does GNC Holdings Compare with Its Peers?



GNC Holdings and its peers

We’ve looked at GNC Holdings’ (GNC) 4Q15 results in this series. Now let’s compare GNC with its peers as of February 12, 2016.

First, let’s compare PE (price-to-earnings) ratios:

  • GNC Holdings (GNC): 10.1x
  • Walgreens Boots Alliance (WBA): 18.6x
  • Rite Aid (RAD): 4.1x

Now let’s look at PBV (price-to-book value) ratios:

  • GNC Holdings (GNC): 4.4x
  • Walgreens Boots Alliance (WBA): 2.7x
  • Rite Aid (RAD): 16.3x

PS (price-to-sales) ratios:

  • GNC Holdings (GNC): 0.74x
  • Walgreens Boots Alliance (WBA): 0.74x
  • Rite Aid (RAD): 0.28x

GNC Holdings has mostly outperformed its peers, based on its PS ratio.

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ETFs that invest in GNC Holdings

The iShares Morningstar Small Value ETF (JKL) invests 0.55% of its holdings in GNC. The ETF tracks a market-cap-weighted index of US small-cap value stocks. The index stocks from the 90th to the 97th percentile of the market-cap spectrum, using fundamental factors.

The SPDR S&P Retail ETF (XRT) invests 1.1% of its holdings in GNC. The ETF tracks a broad-based, equal-weighted index of stocks in the US retail industry.

The Vanguard Small-Cap Growth ETF (VBK) invests 0.31% of its holdings in GNC. The ETF tracks an index that selects and weighs growth stock using multiple factors from US securities ranked between the 85th and 98th percentile by market cap.

Comparing GNC holdings with its ETFs

Now let’s compare GNC with the ETFs that invest in it:

  • the year-to-date price movements of GNC, JKL, XRT, and VBK are -13.0%, -11.4%, -9.1%, and -17.1%, respectively
  • the PE ratios of GNC, JKL, XRT, and VBK are 10.1x, 41.2x, 21.9x, and 63.2x, respectively
  • the PBV ratios of GNC, JKL, XRT, and VBK are 4.4x, 1.3x, 2.8x, and 3.1x, respectively

According to the above findings, ETFs have outperformed GNC Holdings, based on price movement and PE ratios. However, GNC Holdings has outperformed its ETFs based on its PBV ratio.


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