Analyzing Delhaize Group (DEG) and US Foods (USFD)
Delhaize Group (NYSE: DEG) and US Foods (NYSE:USFD) are both mid-cap non-cyclical consumer goods & services companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, valuation, profitability, risk, analyst recommendations and institutional ownership.
Earnings and Valuation
This table compares Delhaize Group and US Foods’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|US Foods||$22.92 billion||0.30||$209.79 million||$1.17||25.97|
US Foods has higher revenue and earnings than Delhaize Group. Delhaize Group is trading at a lower price-to-earnings ratio than US Foods, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and price targets for Delhaize Group and US Foods, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
US Foods has a consensus price target of $31.75, suggesting a potential upside of 4.48%. Given US Foods’ higher probable upside, analysts clearly believe US Foods is more favorable than Delhaize Group.
Insider & Institutional Ownership
96.9% of US Foods shares are held by institutional investors. 1.6% of US Foods shares are held 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 Delhaize Group and US Foods’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Delhaize Group pays an annual dividend of $0.35 per share and has a dividend yield of 1.2%. US Foods does not pay a dividend. Delhaize Group pays out 29.9% of its earnings in the form of a dividend.
US Foods beats Delhaize Group on 8 of the 11 factors compared between the two stocks.
About Delhaize Group
Delhaize le Lion de Leeuw BV (Belgium Branch), formerly Delhaize Group SA, is a Belgium-based food retailer. The Company operates through three segments: the United States, including Food Lion and Hannaford banners; Belgium, including Delhaize Le Lion and AD Delhaize banners, and Southeastern Europe (SEE), including Alfa Beta, Mega Image and Shop&Go banners. The Company is principally engaged in the operation of food supermarkets through Company-operated, affiliated and franchised stores. Affiliated stores are with its banners that are operated by independent third parties to whom the Company sells its products at wholesale prices. Its store network also includes other store formats, such as proximity, cash and carry, and specialty stores. The Company has stores located in the United States (Northeast, Southeast and Mid-Atlantic), Belgium, Luxembourg, Greece, Serbia, Romania and Indonesia. The Company operates over 3,510 stores.
About US Foods
US Foods Holding Corp. is a holding company. The Company is a foodservice distributor in the United States. The Company, through US Foods, Inc. (USF), markets and primarily distributes fresh, frozen and dry food and non-food products to foodservice customers throughout the United States. These customers include independently owned single and multi-unit restaurants, regional concepts, national restaurant chains, hospitals, nursing homes, hotels and motels, country clubs, government and military organizations, colleges and universities, and retail locations. As of December 31, 2016, the Company provided approximately 400,000 fresh, frozen, and dry food stock-keeping units (SKUs), as well as non-food items, sourced from over 5,000 suppliers. As of January 31, 2017, it maintained 75 primary operating facilities, consisting of its 60 distribution centers and other supporting facilities.
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