Financial Analysis: Macy’s (NYSE:M) vs. Puregold Price Club (OTCMKTS:PGCMF)

Macy’s (NYSE:M) and Puregold Price Club (OTCMKTS:PGCMF) are both retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, valuation, institutional ownership and risk.

Valuation and Earnings

This table compares Macy’s and Puregold Price Club’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Macy’s $24.56 billion 0.20 $564.00 million $2.91 5.54
Puregold Price Club N/A N/A N/A N/A N/A

Macy’s has higher revenue and earnings than Puregold Price Club.

Institutional & Insider Ownership

82.0% of Macy’s shares are held by institutional investors. 0.6% of Macy’s shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Macy’s and Puregold Price Club’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Macy’s -19.91% -8.21% -1.46%
Puregold Price Club N/A N/A N/A

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Macy’s and Puregold Price Club, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Macy’s 6 2 2 0 1.60
Puregold Price Club 0 1 0 0 2.00

Macy’s presently has a consensus price target of $9.21, suggesting a potential downside of 42.84%. Given Macy’s’ higher probable upside, research analysts plainly believe Macy’s is more favorable than Puregold Price Club.

Summary

Macy’s beats Puregold Price Club on 5 of the 9 factors compared between the two stocks.

Macy’s Company Profile

Macy's, Inc., an omnichannel retail organization, operates stores, websites, and mobile applications under the Macy's, Bloomingdale's, and bluemercury brands. It sells a range of merchandise, including apparel and accessories for men, women, and kids; cosmetics; home furnishings; and other consumer goods. As of February 1, 2020, the company operated 775 store locations in 43 states, the District of Columbia, Puerto Rico, and Guam. It also operates in Dubai, the United Arab Emirates and Al Zahra, Kuwait under the license agreements. The company was formerly known as Federated Department Stores, Inc. and changed its name to Macy's, Inc. in 2007. Macy's, Inc. was founded in 1830 and is based in New York, New York.

Puregold Price Club Company Profile

Puregold Price Club, Inc. engages in the retail and wholesale of consumer goods in the Philippines. The company operates hypermarkets under the Puregold and Puregold Extra brand name in commercial centers and near transportation hubs; small store under Puregold Minimart brand name; S&R Membership Shopping under the warehouse club concept; and supermarkets under San Roque Supermarkets brand name. The company's stores offer canned goods, housewares, toiletries, dry goods, food products, pharmaceutical and medical goods, etc. It sells its products to retail consumers; and resellers, small to medium sized sari-sari stores, canteens, restaurants, bakeries, and convenience and drug stores, as well as small to medium sized businesses. The company operates 434 total stores, including 229 hypermarkets, 102 supermarkets, 29 extra, 19 minimart, 18 S&R warehouse clubs, and 38 S&R-QSRs. The company was founded in 1998 and is based in Manila, the Philippines. Puregold Price Club, Inc. is a subsidiary of Cosco Capital, Inc.

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