Analyzing Dougherty’s Pharmacy (MYDP) & Rite Aid (RAD)

Dougherty’s Pharmacy (OTCMKTS:MYDP) and Rite Aid (NYSE:RAD) are both small-cap medical companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, earnings, risk, valuation, institutional ownership, dividends and analyst recommendations.

Earnings and Valuation

This table compares Dougherty’s Pharmacy and Rite Aid’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dougherty’s Pharmacy $40.21 million 0.02 -$2.10 million N/A N/A
Rite Aid $21.53 billion 0.06 $943.47 million ($0.02) -64.50

Rite Aid has higher revenue and earnings than Dougherty’s Pharmacy.

Profitability

This table compares Dougherty’s Pharmacy and Rite Aid’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dougherty’s Pharmacy -6.05% -79.29% -10.64%
Rite Aid 3.26% -1.97% -0.30%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Dougherty’s Pharmacy and Rite Aid, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dougherty’s Pharmacy 0 0 0 0 N/A
Rite Aid 2 5 0 0 1.71

Rite Aid has a consensus target price of $2.11, indicating a potential upside of 63.34%. Given Rite Aid’s higher possible upside, analysts plainly believe Rite Aid is more favorable than Dougherty’s Pharmacy.

Insider and Institutional Ownership

0.5% of Dougherty’s Pharmacy shares are held by institutional investors. Comparatively, 55.3% of Rite Aid shares are held by institutional investors. 27.3% of Dougherty’s Pharmacy shares are held by company insiders. Comparatively, 2.1% of Rite Aid shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Dougherty’s Pharmacy has a beta of -0.58, indicating that its share price is 158% less volatile than the S&P 500. Comparatively, Rite Aid has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500.

Summary

Rite Aid beats Dougherty’s Pharmacy on 9 of the 10 factors compared between the two stocks.

About Dougherty’s Pharmacy

Dougherty's Pharmacy, Inc., an investment firm, focuses on acquiring, managing, and growing community based pharmacies in the Southwest Region of the United States. Its flagship store is Dougherty's Pharmacy, a turn-key multi-service pharmacy located in Dallas, Texas. The company was formerly known as Ascendant Solutions, Inc. and changed its name to Dougherty's Pharmacy, Inc. in May 2017. Dougherty's Pharmacy, Inc. was founded in 1998 and is based in Dallas, Texas.

About Rite Aid

Rite Aid Corporation, through its subsidiaries, operates a chain of retail drugstores in the United States. It operates through two segments, Retail Pharmacy and Pharmacy Services. The Retail Pharmacy segment sells prescription drugs and a range of other merchandise, including over-the-counter medications, health and beauty aids, personal care items, cosmetics, household items, food and beverages, greeting cards, seasonal merchandise, and other every day and convenience products. It also operates retail clinics that provide treatment for common conditions; and a range of preventive services comprising screenings, medical tests, immunizations, and basic physical exams. In addition, this segment offers healthcare coaching and disease management services. The Pharmacy Services segment provides pharmacy benefit management (PBM) services and a range of pharmacy-related services. This segment also performs prescription adjudication services for other PBMs; and offers integrated mail-order, specialty and compounding pharmacy, and infertility treatment services, as well as drug benefits under the federal government's Medicare Part D program. As of April 12, 2018, the company operated approximately 2,548 stores in 19 states. Rite Aid Corporation was founded in 1927 and is headquartered in Camp Hill, Pennsylvania.

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