Analyzing Albertsons Companies (NYSE:ACI) and WD-40 (NASDAQ:WDFC)

Albertsons Companies (NYSE:ACI) and WD-40 (NASDAQ:WDFC) are both mid-cap consumer staples companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, valuation, analyst recommendations, earnings, institutional ownership and profitability.

Insider and Institutional Ownership

71.4% of Albertsons Companies shares are owned by institutional investors. Comparatively, 91.5% of WD-40 shares are owned by institutional investors. 1.4% of Albertsons Companies shares are owned by company insiders. Comparatively, 0.8% of WD-40 shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

Albertsons Companies has a beta of 0.4, suggesting that its share price is 60% less volatile than the S&P 500. Comparatively, WD-40 has a beta of 0.3, suggesting that its share price is 70% less volatile than the S&P 500.

Dividends

Albertsons Companies pays an annual dividend of $0.68 per share and has a dividend yield of 5.0%. WD-40 pays an annual dividend of $4.08 per share and has a dividend yield of 1.6%. Albertsons Companies pays out 212.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. WD-40 pays out 69.4% of its earnings in the form of a dividend. Albertsons Companies has raised its dividend for 1 consecutive years and WD-40 has raised its dividend for 17 consecutive years.

Analyst Ratings

This is a summary of current ratings and recommmendations for Albertsons Companies and WD-40, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Albertsons Companies	3	4	10	0	2.41
WD-40	0	1	2	1	3.00

Albertsons Companies presently has a consensus price target of $21.31, suggesting a potential upside of 56.62%. WD-40 has a consensus price target of $270.00, suggesting a potential upside of 8.73%. Given Albertsons Companies’ higher possible upside, equities research analysts plainly believe Albertsons Companies is more favorable than WD-40.

Profitability

This table compares Albertsons Companies and WD-40’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Albertsons Companies	0.26%	42.75%	4.24%
WD-40	12.57%	30.23%	17.15%

Valuation & Earnings

This table compares Albertsons Companies and WD-40″s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Albertsons Companies	$83.17 billion	0.08	$217.40 million	$0.32	42.52
WD-40	$619.98 million	5.39	$90.99 million	$5.88	42.23

Albertsons Companies has higher revenue and earnings than WD-40. WD-40 is trading at a lower price-to-earnings ratio than Albertsons Companies, indicating that it is currently the more affordable of the two stocks.

About Albertsons Companies

Albertsons Companies, Inc., through its subsidiaries, engages in the operation of food and drug stores in the United States. The company’s food and drug retail stores offer grocery products, general merchandise, health and beauty care products, pharmacy, fuel, and other items and services. It also manufactures and processes food products for sale in stores. It operates stores under various banners, including Albertsons, Safeway, Vons, Pavilions, Randalls, Tom Thumb, Carrs, Jewel-Osco, Acme, Shaw’s, Star Market, United Supermarkets, Market Street, Haggen, Kings Food Markets, and Balducci’s Food Lovers Market; and pharmacies, in-store branded coffee shops, adjacent fuel centers, distribution centers, and manufacturing facilities, as well as various digital platforms. Albertsons Companies, Inc. was founded in 1860 and is headquartered in Boise, Idaho. Albertsons Companies, Inc. operates as a subsidiary of Albertsons Investor Holdings LLC.

About WD-40

WD-40 Company develops and sells maintenance products, and homecare and cleaning products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company provides multi-purpose maintenance products that include aerosol sprays, non-aerosol trigger sprays, precision pens, and in liquid-bulk form products under the WD-40 Multi-Use brand name; specialty maintenance products, such as penetrants, degreasers, corrosion inhibitors, greases, lubricants, and rust removers under the WD-40 Specialist brand; and bike-specific products. It also offers multi-purpose and specialty drip oils, and spray lubricant products, as well as other specialty maintenance products under the 3-IN-ONE brand name; and professional spray maintenance products and lubricants for the bike maintenance market under the GT85 brand name. In addition, the company provides automatic toilet bowl cleaners under the 2000 Flushes brand name; aerosol and liquid trigger carpet stain and odor eliminators under the Spot Shot brand; room and rug deodorizers under the Carpet Fresh brand name; carpet and household cleaners, and rug and room deodorizers under the 1001 brand; heavy-duty hand cleaner products under the Lava brand name in the United States, as well as under the Solvol brand name in Australia; and automatic toilet bowl cleaners under the X-14 brand name. It sells its products primarily through warehouse club stores, hardware stores, automotive parts outlets, industrial distributors and suppliers, mass retail and home center stores, value retailers, grocery stores, online retailers, farm supply, sport retailers, and independent bike dealers. WD-40 Company was founded in 1953 and is headquartered in San Diego, California.