Critical Survey: Marks and Spencer Group (OTCMKTS:MAKSY) versus Ingles Markets (NASDAQ:IMKTA)

Marks and Spencer Group (OTCMKTS:MAKSY) and Ingles Markets (NASDAQ:IMKTA) are both retail/wholesale companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, profitability, valuation, dividends and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings for Marks and Spencer Group and Ingles Markets, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marks and Spencer Group	0	2	0	1	2.67
Ingles Markets	0	1	0	0	2.00

Valuation & Earnings

This table compares Marks and Spencer Group and Ingles Markets”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Marks and Spencer Group	$17.75 billion	0.62	$377.28 million	N/A	N/A
Ingles Markets	$5.64 billion	0.24	$105.54 million	$2.97	24.23

Marks and Spencer Group has higher revenue and earnings than Ingles Markets.

Profitability

This table compares Marks and Spencer Group and Ingles Markets’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Marks and Spencer Group	N/A	N/A	N/A
Ingles Markets	1.05%	3.60%	2.24%

Risk & Volatility

Marks and Spencer Group has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500. Comparatively, Ingles Markets has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500.

Institutional & Insider Ownership

62.5% of Ingles Markets shares are owned by institutional investors. 22.8% of Ingles Markets shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Marks and Spencer Group pays an annual dividend of $0.14 per share and has a dividend yield of 1.3%. Ingles Markets pays an annual dividend of $0.66 per share and has a dividend yield of 0.9%. Ingles Markets pays out 22.2% of its earnings in the form of a dividend.

Summary

Marks and Spencer Group beats Ingles Markets on 8 of the 13 factors compared between the two stocks.

About Marks and Spencer Group

Marks and Spencer Group plc operates various retail stores. It operates through five segments: UK Clothing & Home, UK Food, International, Ocado, and All Other. The company offers protein deli and dairy; produce; ambient and in-store bakery; meals dessert and frozen; and hospitality and Food on the Move' products. The company also provides womenswear, menswear, lingerie, kids wear, and home products; financial services, including credit cards, payment solutions, insurances, savings, and loans; and renewable energy services. In addition, it invests in and develops real estate properties; operates international franchises; and provides its products online. The company also exports its products. The company was founded in 1884 and is headquartered in London, the United Kingdom.

About Ingles Markets

Ingles Markets, Incorporated, together with its subsidiaries, operates a chain of supermarkets in the southeast United States. It offers food products, including grocery, meat and dairy products, produce, frozen foods, and other perishables; and non-food products, which include fuel centers, pharmacies, health and beauty care products, and general merchandise, as well as private label items. The company owns and operates a milk processing and packaging plant that supplies organic milk, fruit juices, and bottled water products to other retailers, food service distributors, and grocery warehouses. In addition, it provides home meal replacement items, delicatessens, bakeries, floral departments, and greeting cards, as well as broad selections of local organic, beverage, and health-related items. The company operates under the Ingles and Sav-Mor brand names. Ingles Markets, Incorporated was founded in 1963 and is headquartered in Asheville, North Carolina.