PetSmart, Inc. (PETM), Petmed Express Inc (PETS), VCA Antech Inc (WOOF): Best Companies for Your Pets and Your Portfolio

In the company’s last quarter, they beat earnings expectations, but missed on revenue expectations. Earnings increased 17% to $0.40 per share versus $0.34 in the prior year. Revenues did increase over 7% to $438.61 million from the prior year, but that was short of analysts’ estimates for $447.21 million in revenues.

I like VCA Antech Inc (NASDAQ:WOOF)’s business model. The company has no national competitor and the company is looking to buy other veterinary hospitals. The veterinary hospital business is very fragmented. I see great potential in rolling up the competing small veterinary hospitals. VCA Antech Inc (NASDAQ:WOOF) even advertises on its website that prospective sellers can submit their hospital for consideration as a buyout. This reminds me of how Wayne Huizenga rolled up video rental with Blockbuster Video and waste disposal with Waste Management.

How they all compare

Foolish assessment

I see the pet industry continuing to grow. As the housing market continues to recover, more new houses will be sold and that increases demand for pets to fill those homes. All 3 companies have carved out a niche in the booming pet industry and have no serious competitors yet. Further gains for all 3 stocks are likely as the economy strengthens in 2013.

The article Best Companies for Your Pets and Your Portfolio originally appeared on Fool.com and is written by Mark Yagalla.

Mark Yagalla has no position in any stocks mentioned. The Motley Fool recommends PetSmart and VCA Antech. Mark is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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