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How Does GNC Holdings Compare to Its Peers?

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Aug. 1 2016, Published 10:14 a.m. ET

GNC Holdings and its peers

We looked at GNC Holdings’ (GNC) 2Q16 results in the previous part. Now, let’s compare GNC with its peers as of July 28, 2016.

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

  • GNC Holdings – 7.9x
  • Walgreens Boots Alliance (WBA) – 27.4x
  • Rite Aid (RAD) – 52.0x

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

  • GNC Holdings – 5.1x
  • Walgreens Boots Alliance – 2.8x
  • Rite Aid – 12.2x

Now, let’s compare the price-to-sales ratios:

  • GNC Holdings – 0.56x
  • Walgreens Boots Alliance – 0.74x
  • Rite Aid – 0.23x

The peers outperformed GNC Holdings based on the PE ratio.

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ETFs that invest in GNC Holdings

The iShares Morningstar Small Value ETF (JKL) invests 0.35% of its holdings in GNC. JKL 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 1.2% of its holdings in GNC. XRT tracks a broad-based, equal-weighted index of stocks in the US retail industry.

The First Trust Mid-Cap Core AlphaDexFund (FNX) invests 0.17% of its holdings in GNC. FNX seeks to outperform the US mid-cap sector by choosing stocks from the S&P MidCap 400 Index based on fundamental growth and value factors.

Comparing GNC holdings and 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 FNX are -33.7%, 11.8%, 4.2%, and 9.7%, respectively.
  • The PBV ratios of GNC, JKL, XRT, and FNX are 5.1x, 1.4x, 3.1x, and 2.0x, respectively.

According to the above findings, these ETFs outperformed GNC Holdings based on the price movement. However, GNC Holdings outperformed the ETFs based on the PBV ratio.

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