The Kroger (NYSE:KR) and Koninklijke Ahold Delhaize (OTCMKTS:ADRNY) 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 dividends, earnings, valuation, risk, analyst recommendations, profitability and institutional ownership.
Insider & Institutional Ownership
84.6% of The Kroger shares are held by institutional investors. Comparatively, 0.3% of Koninklijke Ahold Delhaize shares are held by institutional investors. 1.3% of The Kroger shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares The Kroger and Koninklijke Ahold Delhaize's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
The Kroger | 2.29% | 27.26% | 5.47% |
Koninklijke Ahold Delhaize | 2.67% | 17.32% | 5.62% |
Risk & Volatility
The Kroger has a beta of 0.36, suggesting that its stock price is 64% less volatile than the S&P 500. Comparatively, Koninklijke Ahold Delhaize has a beta of 0.3, suggesting that its stock price is 70% less volatile than the S&P 500.
Earnings & Valuation
This table compares The Kroger and Koninklijke Ahold Delhaize's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
The Kroger | $122.29 billion | 0.23 | $1.66 billion | $2.20 | 16.87 |
Koninklijke Ahold Delhaize | $74.22 billion | 0.41 | $1.98 billion | $1.92 | 14.19 |
Koninklijke Ahold Delhaize has lower revenue, but higher earnings than The Kroger. Koninklijke Ahold Delhaize is trading at a lower price-to-earnings ratio than The Kroger, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings and price targets for The Kroger and Koninklijke Ahold Delhaize, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
The Kroger | 3 | 14 | 2 | 0 | 1.95 |
Koninklijke Ahold Delhaize | 1 | 7 | 3 | 0 | 2.18 |
The Kroger currently has a consensus target price of $34.4211, indicating a potential downside of 7.25%. Given The Kroger's higher probable upside, equities analysts plainly believe The Kroger is more favorable than Koninklijke Ahold Delhaize.
Dividends
The Kroger pays an annual dividend of $0.72 per share and has a dividend yield of 1.9%. Koninklijke Ahold Delhaize pays an annual dividend of $0.89 per share and has a dividend yield of 3.3%. The Kroger pays out 32.7% of its earnings in the form of a dividend. Koninklijke Ahold Delhaize pays out 46.4% 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. The Kroger has increased its dividend for 14 consecutive years.
Summary
The Kroger beats Koninklijke Ahold Delhaize on 9 of the 17 factors compared between the two stocks.