Analyzing Pantry (PTRY) & Smart (SFS)

Pantry (NASDAQ: PTRY) and Smart (NYSE:SFS) are both small-cap supermarkets & convenience stores companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Volatility and Risk

Pantry has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500. Comparatively, Smart has a beta of 0.25, meaning that its share price is 75% less volatile than the S&P 500.

Profitability

This table compares Pantry and Smart’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pantry 1.13% 21.76% 4.39%
Smart 0.21% 4.14% 1.19%

Earnings and Valuation

This table compares Pantry and Smart’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Pantry N/A N/A N/A $1.61 22.82
Smart $4.34 billion 0.12 $12.94 million $0.12 60.83

Smart has higher revenue and earnings than Pantry. Pantry is trading at a lower price-to-earnings ratio than Smart, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Pantry and Smart, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pantry 0 0 0 0 N/A
Smart 1 2 5 0 2.50

Smart has a consensus price target of $12.81, suggesting a potential upside of 75.51%. Given Smart’s higher probable upside, analysts plainly believe Smart is more favorable than Pantry.

Summary

Pantry beats Smart on 5 of the 8 factors compared between the two stocks.

About Pantry

The Pantry, Inc. (Pantry) is an independently operated convenience store chain in the southeastern United States. As of June 26, 2014, Pantry operated 1,527 stores in 13 states under a range of banners, including Kangaroo Express, its primary operating banner. The Company stores offer a range of merchandise, fuel and ancillary products and services designed to appeal to the convenience needs of its customers, including fuel, car care products and services, tobacco products, beer, soft drinks, self-service fast food and beverages, publications, dairy products, groceries, health and beauty aids, money orders and other ancillary services. As of September 26, 2013, approximately 32% of its stores were located in coastal/resort areas, such as Jacksonville, Florida, Orlando, Florida/Disney World, Myrtle Beach, South Carolina, Charleston, South Carolina, St. Augustine, Florida, Hilton Head, South Carolina and Gulfport/Biloxi, Mississippi.

About Smart

Smart & Final Stores, Inc. is a food retailer. The Company is engaged in the business of selling fresh perishables and everyday grocery items, together with foodservice, packaging and janitorial products. The Company operates through two segments: Smart & Final, and Cash and Carry. The Smart & Final segment focuses on both household and business customers. Its Smart & Final stores offer various selections of fresh perishables and everyday grocery items, together with a focused selection of foodservice, packaging and janitorial products, under both national and private label brands. The Cash & Carry segment focuses primarily on restaurants, caterers and a range of other foodservice businesses. It operates non-membership warehouse-style grocery stores under the Smart & Final banner in California, Arizona, and Nevada. The Company also operates non-membership warehouse-style grocery stores in Washington, Oregon, California, Idaho, Utah, and Nevada under the Cash & Carry banner.

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