Head-To-Head Review: Kroger (NYSE:KR) and Clicks Group (OTCMKTS:CLCGY)

Clicks Group (OTCMKTS:CLCGY) and Kroger (NYSE:KR) are both consumer staples companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, valuation, profitability, institutional ownership, dividends and analyst recommendations.

Institutional and Insider Ownership

80.9% of Kroger shares are owned by institutional investors. 0.4% of Kroger shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Clicks Group and Kroger’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Clicks Group	N/A	N/A	N/A
Kroger	0.71%	44.33%	6.20%

Dividends

Clicks Group pays an annual dividend of $0.47 per share and has a dividend yield of 1.8%. Kroger pays an annual dividend of $1.56 per share and has a dividend yield of 2.8%. Kroger pays out 91.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kroger has raised its dividend for 19 consecutive years. Kroger is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Clicks Group and Kroger, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Clicks Group	1	0	0	0	1.00
Kroger	0	9	10	0	2.53

Kroger has a consensus target price of $72.00, suggesting a potential upside of 26.99%. Given Kroger’s stronger consensus rating and higher probable upside, analysts clearly believe Kroger is more favorable than Clicks Group.

Valuation and Earnings

This table compares Clicks Group and Kroger”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Clicks Group	N/A	N/A	N/A	N/A	N/A
Kroger	$148.65 billion	0.23	$1.02 billion	$1.70	33.35

Kroger has higher revenue and earnings than Clicks Group.

Summary

Kroger beats Clicks Group on 11 of the 12 factors compared between the two stocks.

About Clicks Group

Clicks Group Limited, together with its subsidiaries, operates as a health, wellness, and beauty retailer in South Africa and internationally. It operates through two segments: Retail and Distribution. The company retails pharmacy, health, and beauty through stores, and in-store pharmacies for the middle to upper income markets under the Clicks brand name. It also offers various range of mother and baby products including baby hardware, accessories, health, foods, diapers and wipes, and baby toiletries under the Clicks Baby brand; beauty therapy, grooming, and ethnic hair care under the Sorbet brand name; diabetic clinic, travel clinic, and wounds management practice under the M-KEM brand; and naturally-inspired beauty products under The Body Shop brand name. In addition, the company involved in the wholesale and supply of pharmaceutical products to retail pharmacies, private hospitals, dispensing doctors, and retail health stores under the UPD brand. The company was formerly known as New Clicks Holdings Limited and changed its name to Clicks Group Limited in June 2009. Clicks Group Limited was founded in 1968 and is headquartered in Cape Town, South Africa.

About Kroger

The Kroger Co. operates as a food and drug retailer in the United States. The company operates combination food and drug stores, multi-department stores, marketplace stores, and price impact warehouses. Its combination food and drug stores offer natural food and organic sections, pharmacies, general merchandise, pet centers, fresh seafood, and organic produce; and multi-department stores provide apparel, home fashion and furnishings, outdoor living, electronics, automotive products, and toys. The company’s marketplace stores offer full-service grocery, pharmacy, health and beauty care, and perishable goods, as well as general merchandise, including apparel, home goods, and toys; and price impact warehouse stores provide grocery, and health and beauty care items, as well as meat, dairy, baked goods, and fresh produce items. It also manufactures and processes food products for sale in its supermarkets and online; and sells fuel through fuel centers. The Kroger Co. was founded in 1883 and is based in Cincinnati, Ohio.