SpartanNash Company (NASDAQ: SPTN) and United Natural Foods (NASDAQ:UNFI) are both retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, profitabiliy, analyst recommendations, institutional ownership, earnings, valuation and dividends.
This table compares SpartanNash Company and United Natural Foods’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|United Natural Foods||1.38%||8.21%||4.46%|
Valuation and Earnings
This table compares SpartanNash Company and United Natural Foods’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|SpartanNash Company||$7.86 billion||0.13||$225.80 million||$1.65||16.48|
|United Natural Foods||$9.15 billion||0.20||$316.02 million||$2.49||14.21|
United Natural Foods has higher revenue and earnings than SpartanNash Company. United Natural Foods is trading at a lower price-to-earnings ratio than SpartanNash Company, indicating that it is currently the more affordable of the two stocks.
SpartanNash Company pays an annual dividend of $0.66 per share and has a dividend yield of 2.4%. United Natural Foods does not pay a dividend. SpartanNash Company pays out 40.0% of its earnings in the form of a dividend.
This is a summary of current ratings and recommmendations for SpartanNash Company and United Natural Foods, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|United Natural Foods||3||8||3||0||2.00|
SpartanNash Company presently has a consensus price target of $32.25, suggesting a potential upside of 18.57%. United Natural Foods has a consensus price target of $42.00, suggesting a potential upside of 18.68%. Given United Natural Foods’ higher probable upside, analysts clearly believe United Natural Foods is more favorable than SpartanNash Company.
Volatility & Risk
SpartanNash Company has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.Comparatively, United Natural Foods has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500.
Institutional and Insider Ownership
88.3% of SpartanNash Company shares are owned by institutional investors. Comparatively, 98.3% of United Natural Foods shares are owned by institutional investors. 3.0% of SpartanNash Company shares are owned by company insiders. Comparatively, 1.3% of United Natural Foods shares are owned by company 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.
United Natural Foods beats SpartanNash Company on 12 of the 16 factors compared between the two stocks.
SpartanNash Company Company Profile
SpartanNash Company is a multi-regional grocery distributor and grocery retailer. The Company’s core businesses include distributing grocery products to independent grocery retailers (independent retailers), select national retailers, its corporate owned retail stores, and the United States military commissaries. The Company operates through three segments: Food Distribution, Military and Retail. The Food Distribution segment provides a range of nationally branded and private brand grocery products and perishable food products to independent retailers, food service distributors and its corporate owned retail stores. The Military segment contracts with manufacturers to distribute a range of grocery products primarily to military commissaries and exchanges located in the United States, the District of Columbia, Europe, Cuba, Puerto Rico, Bahrain and Egypt. As of December 31, 2016, the Retail segment operated 157 corporate owned retail stores in the Midwest and Great Lakes regions.
United Natural Foods Company Profile
United Natural Foods, Inc. is a distributor and retailer of natural, organic and specialty products. The Company’s segments include Wholesale and Other. The Wholesale segment is engaged in the national distribution of natural, organic and specialty foods, produce and related products in the United States and Canada. The Other segment includes a retail division, which engages in the sale of natural foods and related products to the general public through retail storefronts on the east coast of the United States; a manufacturing division, which engages in importing, roasting and packaging of nuts, seeds, dried fruit and snack items, and its branded product lines. Its operations consist of three operating divisions: Wholesale Division, Retail Division, and Manufacturing and Branded Products divisions. As of July 30, 2016, the Company had offered 100,000 natural, organic and specialty foods, and non-food products, consisting of national, regional and private-label brands.
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