Supervalu (NYSE: SVU) and Kroger (NYSE:KR) are both non-cyclical consumer goods & services companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.
Kroger pays an annual dividend of $0.50 per share and has a dividend yield of 1.8%. Supervalu does not pay a dividend. Kroger pays out 29.8% of its earnings in the form of a dividend. Supervalu has increased its dividend for 9 consecutive years.
This table compares Supervalu and Kroger’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Supervalu and Kroger’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Supervalu||$12.48 billion||0.04||$650.00 million||$0.23||59.70|
|Kroger||$115.34 billion||0.21||$1.98 billion||$1.68||16.32|
Kroger has higher revenue and earnings than Supervalu. Kroger is trading at a lower price-to-earnings ratio than Supervalu, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and recommmendations for Supervalu and Kroger, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Supervalu presently has a consensus price target of $24.21, indicating a potential upside of 76.36%. Kroger has a consensus price target of $29.85, indicating a potential upside of 8.86%. Given Supervalu’s higher probable upside, equities analysts clearly believe Supervalu is more favorable than Kroger.
Risk and Volatility
Supervalu has a beta of 1.49, suggesting that its stock price is 49% more volatile than the S&P 500. Comparatively, Kroger has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500.
Insider & Institutional Ownership
92.2% of Supervalu shares are owned by institutional investors. Comparatively, 79.1% of Kroger shares are owned by institutional investors. 1.7% of Supervalu shares are owned by insiders. Comparatively, 0.9% of Kroger shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Kroger beats Supervalu on 9 of the 17 factors compared between the two stocks.
Supervalu Inc. is a wholesale distributor to independent retail customers across the United States. The Company’s segments include Wholesale and Retail. The Company offers a range of advertised brand name and private-label products, including grocery (both perishable and nonperishable), general merchandise and home, health and beauty care, and pharmacy, which are sold through Company-operated and licensed Retail stores to shoppers and through its Wholesale segment to independent retail customers. The Company’s Wholesale segment provides wholesale distribution of products to independent retail customers. Wholesale is organized and operated through two geographic regions: East and West. As of February 27, 2016, the Company conducted its Retail operations through a total of 200 stores primarily organized under five regionally-based retail banners of Cub Foods, Shoppers Food & Pharmacy, Shop ‘n Save, Farm Fresh and Hornbacher’s, as well as two Rainbow and two County Market stores.
The Kroger Co. (Kroger) manufactures and processes food for sale in its supermarkets. The Company operates supermarkets, multi-department stores, jewelry stores and convenience stores throughout the United States. As of January 28, 2017, it had operated approximately 4,000 owned or leased supermarkets, convenience stores, fine jewelry stores, distribution warehouses and food production plants through divisions, subsidiaries or affiliates. These facilities are located throughout the United States. As of January 28, 2017, Kroger operated, either directly or through its subsidiaries, 2,796 supermarkets under a range of local banner names, of which 2,255 had pharmacies and 1,445 had fuel centers. As of January 28, 2017, the Company offered ClickList and Harris Teeter ExpressLane, personalized, order online, pick up at the store services at 637 of its supermarkets. P$$T, Check This Out and Heritage Farm are the three brands. Its other brands include Simple Truth and Simple Truth Organic.
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