Analyzing United Natural Foods (UNFI) & Its Peers
United Natural Foods (NASDAQ: UNFI) is one of 23 publicly-traded companies in the “Food Retail & Distribution” industry, but how does it contrast to its peers? We will compare United Natural Foods to similar companies based on the strength of its valuation, profitability, institutional ownership, dividends, analyst recommendations, earnings and risk.
This table compares United Natural Foods and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|United Natural Foods||1.40%||8.10%||4.50%|
|United Natural Foods Competitors||0.82%||32.88%||4.20%|
This is a breakdown of recent ratings and price targets for United Natural Foods and its peers, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|United Natural Foods||4||9||4||0||2.00|
|United Natural Foods Competitors||705||1430||1413||22||2.21|
United Natural Foods presently has a consensus target price of $42.13, suggesting a potential upside of 0.25%. As a group, “Food Retail & Distribution” companies have a potential upside of 4.02%. Given United Natural Foods’ peers stronger consensus rating and higher probable upside, analysts clearly believe United Natural Foods has less favorable growth aspects than its peers.
Insider and Institutional Ownership
62.7% of shares of all “Food Retail & Distribution” companies are owned by institutional investors. 1.3% of United Natural Foods shares are owned by insiders. Comparatively, 19.9% of shares of all “Food Retail & Distribution” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Valuation & Earnings
This table compares United Natural Foods and its peers top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|United Natural Foods||$9.15 billion||$316.02 million||16.42|
|United Natural Foods Competitors||$21.37 billion||$977.08 million||39.12|
United Natural Foods’ peers have higher revenue and earnings than United Natural Foods. United Natural Foods is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Volatility & Risk
United Natural Foods has a beta of 1.39, suggesting that its stock price is 39% more volatile than the S&P 500. Comparatively, United Natural Foods’ peers have a beta of 0.93, suggesting that their average stock price is 7% less volatile than the S&P 500.
United Natural Foods peers beat United Natural Foods on 10 of the 13 factors compared.
About United Natural Foods
United Natural Foods, Inc. is a distributor and retailer of natural, organic and specialty products. The Company’s segments include Wholesale and Other. The Wholesale segment is engaged in the national distribution of natural, organic and specialty foods, produce and related products in the United States and Canada. The Other segment includes a retail division, which engages in the sale of natural foods and related products to the general public through retail storefronts on the east coast of the United States; a manufacturing division, which engages in importing, roasting and packaging of nuts, seeds, dried fruit and snack items, and its branded product lines. Its operations consist of three operating divisions: Wholesale Division, Retail Division, and Manufacturing and Branded Products divisions. As of July 30, 2016, the Company had offered 100,000 natural, organic and specialty foods, and non-food products, consisting of national, regional and private-label brands.
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