Head-To-Head Analysis: Albertsons Companies (NYSE:ACI) vs. Dingdong (Cayman) (NYSE:DDL)

Dingdong (Cayman) (NYSE:DDL) and Albertsons Companies (NYSE:ACI) are both consumer staples companies, but which is the better business? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, analyst recommendations, valuation and institutional ownership.

Analyst Recommendations

This is a summary of recent recommendations for Dingdong (Cayman) and Albertsons Companies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dingdong (Cayman)	0	2	0	0	2.00
Albertsons Companies	4	8	5	0	2.06

Albertsons Companies has a consensus price target of $15.31, indicating a potential upside of 23.80%. Given Albertsons Companies’ stronger consensus rating and higher possible upside, analysts plainly believe Albertsons Companies is more favorable than Dingdong (Cayman).

Profitability

This table compares Dingdong (Cayman) and Albertsons Companies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dingdong (Cayman)	1.54%	36.51%	5.54%
Albertsons Companies	0.08%	45.59%	3.83%

Institutional and Insider Ownership

24.7% of Dingdong (Cayman) shares are owned by institutional investors. Comparatively, 71.3% of Albertsons Companies shares are owned by institutional investors. 29.8% of Dingdong (Cayman) shares are owned by company insiders. Comparatively, 1.2% of Albertsons Companies shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Dingdong (Cayman) and Albertsons Companies”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dingdong (Cayman)	$24.45 billion	0.02	$31.70 million	$0.24	9.48
Albertsons Companies	$83.23 billion	0.07	$217.40 million	$0.08	154.56

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

Volatility and Risk

Dingdong (Cayman) has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500. Comparatively, Albertsons Companies has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500.

Summary

Albertsons Companies beats Dingdong (Cayman) on 9 of the 14 factors compared between the two stocks.

About Dingdong (Cayman)

Dingdong (Cayman) Limited operates an e-commerce company in China. The company offers fresh groceries, including vegetables, meat and eggs, fruits, and seafood; prepared food, and other food products, such as baked goods, dairy, seasonings, beverages, instant food, oil, and snacks. It offers its products through traditional offline, as well as online channels through Dingdong Fresh app, mini-programs, and third-party platforms. Dingdong (Cayman) Limited was founded in 2017 and is headquartered in Shanghai, China.

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.