Performance Food Group (NYSE: PFGC) and Core-Mark (NASDAQ:CORE) are both retail/wholesale companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, valuation, risk, institutional ownership, dividends and analyst recommendations.
This is a summary of recent ratings for Performance Food Group and Core-Mark, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Performance Food Group||0||5||4||0||2.44|
Performance Food Group presently has a consensus target price of $33.86, suggesting a potential upside of 11.56%. Core-Mark has a consensus target price of $26.20, suggesting a potential upside of 22.14%. Given Core-Mark’s stronger consensus rating and higher probable upside, analysts clearly believe Core-Mark is more favorable than Performance Food Group.
Insider and Institutional Ownership
94.9% of Performance Food Group shares are owned by institutional investors. Comparatively, 97.8% of Core-Mark shares are owned by institutional investors. 3.7% of Performance Food Group shares are owned by insiders. Comparatively, 2.4% of Core-Mark shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This table compares Performance Food Group and Core-Mark’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Performance Food Group||1.24%||15.69%||3.86%|
Risk and Volatility
Performance Food Group has a beta of 0.32, suggesting that its stock price is 68% less volatile than the S&P 500. Comparatively, Core-Mark has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500.
Core-Mark pays an annual dividend of $0.40 per share and has a dividend yield of 1.9%. Performance Food Group does not pay a dividend. Core-Mark pays out 40.0% of its earnings in the form of a dividend.
Valuation and Earnings
This table compares Performance Food Group and Core-Mark’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Performance Food Group||$16.76 billion||0.19||$96.30 million||$1.24||24.48|
|Core-Mark||$15.69 billion||0.06||$33.50 million||$1.00||21.45|
Performance Food Group has higher revenue and earnings than Core-Mark. Core-Mark is trading at a lower price-to-earnings ratio than Performance Food Group, indicating that it is currently the more affordable of the two stocks.
Performance Food Group beats Core-Mark on 11 of the 17 factors compared between the two stocks.
Performance Food Group Company Profile
Performance Food Group Company, through its subsidiaries, markets and distributes food and food-related products. The Company operates through three segments: Performance Foodservice, PFG Customized and Vistar. The Performance Foodservice segment distributes a range of national brands, customer brands, and branded food and food-related products. It sells to independent or street, and multi-unit or chain, restaurants and other institutions. Its PFG Customized segment provides service to family and casual dining restaurant chains, and fast casual and quick service restaurant chains. Its Vistar segment specializes in distributing candy, snacks, beverages and other items nationally to the vending, office coffee service, theater, hospitality and other channels. Its products include a range of frozen foods, such as meats, fully prepared appetizers and entrees, and desserts; a range of canned and dry foods; fresh meats; dairy products; beverage products, and snack and other products.
Core-Mark Company Profile
Core-Mark Holding Company, Inc. markets fresh and broad-line supply solutions to the convenience retail industry. The company sells and distributes various food/non-food products, including cigarettes, fast food, candies, snacks, groceries, fresh products, dairy products, breads, beverages, other tobacco products, general merchandise and equipment, and health and beauty care products. Its customers include traditional convenience stores, such as national and super-regional convenience store operators, as well as independently owned convenience stores; and alternative outlets, which include grocery stores, drug stores, big box or supercenter stores, liquor stores, cigarette and tobacco shops, hotel gift shops, military exchanges, college and corporate campuses, casinos, hardware stores, airport concessions, and other specialty and small format stores that carry convenience products. The company offers its products to 45,000 customer locations through a network of distribution centers in the United States and Canada. Core-Mark Holding Company, Inc. was founded in 1888 and is headquartered in South San Francisco, California.
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