KR vs. YUM, CPNG, FAST, JD, DG, TSCO, AZO, EBAY, DLTR, and QSR
Should you be buying Kroger stock or one of its competitors? The main competitors of Kroger include Yum! Brands (YUM), Coupang (CPNG), Fastenal (FAST), JD.com (JD), Dollar General (DG), Tractor Supply (TSCO), AutoZone (AZO), eBay (EBAY), Dollar Tree (DLTR), and Restaurant Brands International (QSR). These companies are all part of the "retail/wholesale" sector.
Kroger (NYSE:KR) and Yum! Brands (NYSE:YUM) are both large-cap retail/wholesale companies, but which is the superior business? We will contrast the two companies based on the strength of their community ranking, dividends, analyst recommendations, risk, valuation, media sentiment, institutional ownership, earnings and profitability.
Yum! Brands has a net margin of 22.92% compared to Kroger's net margin of 1.44%. Kroger's return on equity of 31.44% beat Yum! Brands' return on equity.
Kroger pays an annual dividend of $1.16 per share and has a dividend yield of 2.1%. Yum! Brands pays an annual dividend of $2.68 per share and has a dividend yield of 2.0%. Kroger pays out 39.2% of its earnings in the form of a dividend. Yum! Brands pays out 47.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Kroger is clearly the better dividend stock, given its higher yield and lower payout ratio.
Kroger presently has a consensus target price of $55.17, suggesting a potential upside of 0.71%. Yum! Brands has a consensus target price of $143.53, suggesting a potential upside of 6.84%. Given Yum! Brands' higher possible upside, analysts clearly believe Yum! Brands is more favorable than Kroger.
80.9% of Kroger shares are held by institutional investors. Comparatively, 82.4% of Yum! Brands shares are held by institutional investors. 1.4% of Kroger shares are held by insiders. Comparatively, 0.3% of Yum! Brands shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
In the previous week, Yum! Brands had 18 more articles in the media than Kroger. MarketBeat recorded 48 mentions for Yum! Brands and 30 mentions for Kroger. Yum! Brands' average media sentiment score of 0.21 beat Kroger's score of 0.11 indicating that Yum! Brands is being referred to more favorably in the news media.
Kroger has higher revenue and earnings than Yum! Brands. Kroger is trading at a lower price-to-earnings ratio than Yum! Brands, indicating that it is currently the more affordable of the two stocks.
Kroger has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500. Comparatively, Yum! Brands has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500.
Kroger received 28 more outperform votes than Yum! Brands when rated by MarketBeat users. However, 65.28% of users gave Yum! Brands an outperform vote while only 65.04% of users gave Kroger an outperform vote.
Summary
Yum! Brands beats Kroger on 12 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding KR and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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