Contrasting Ingles Markets (NASDAQ:IMKTA) & Tesco (OTCMKTS:TSCDY)

Tesco (OTCMKTS:TSCDY) and Ingles Markets (NASDAQ:IMKTA) are both retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their risk, dividends, institutional ownership, earnings, analyst recommendations, profitability and valuation.

Dividends

Tesco pays an annual dividend of $0.78 per share and has a dividend yield of 4.7%. Ingles Markets pays an annual dividend of $0.66 per share and has a dividend yield of 1.0%. Ingles Markets pays out 20.2% of its earnings in the form of a dividend.

Institutional and Insider Ownership

0.0% of Tesco shares are owned by institutional investors. Comparatively, 62.5% of Ingles Markets shares are owned by institutional investors. 22.8% of Ingles Markets shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Tesco and Ingles Markets”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tesco	$89.07 billion	0.42	$2.07 billion	N/A	N/A
Ingles Markets	$5.64 billion	0.22	$105.54 million	$3.26	20.34

Tesco has higher revenue and earnings than Ingles Markets.

Risk and Volatility

Tesco has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500. Comparatively, Ingles Markets has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500.

Profitability

This table compares Tesco and Ingles Markets’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tesco	N/A	N/A	N/A
Ingles Markets	1.14%	3.98%	2.46%

Analyst Ratings

This is a summary of current ratings for Tesco and Ingles Markets, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tesco	0	1	2	2	3.20
Ingles Markets	0	0	0	0	0.00

Summary

Tesco beats Ingles Markets on 9 of the 14 factors compared between the two stocks.

About Tesco

Tesco PLC, together with its subsidiaries, operates as a grocery retailer in the United Kingdom, Republic of Ireland, the Czech Republic, Slovakia, and Hungary. It offers grocery products through its stores, as well as online. The company is also involved in the food and drink wholesaling activities. In addition, it provides banking and insurance and mobile operating services. Further, the company operates a network of one stop convenience stores; and offers data science, technology, software, and consultancy services. Tesco PLC was founded in 1919 and is headquartered in Welwyn Garden City, the United Kingdom.

About Ingles Markets

Ingles Markets, Incorporated, together with its subsidiaries, operates a chain of supermarkets in the southeast United States. It offers food products, including grocery, meat and dairy products, produce, frozen foods, and other perishables; and non-food products, which include fuel centers, pharmacies, health and beauty care products, and general merchandise, as well as private label items. The company owns and operates a milk processing and packaging plant that supplies organic milk, fruit juices, and bottled water products to other retailers, food service distributors, and grocery warehouses. In addition, it provides home meal replacement items, delicatessens, bakeries, floral departments, and greeting cards, as well as broad selections of local organic, beverage, and health-related items. The company operates under the Ingles and Sav-Mor brand names. Ingles Markets, Incorporated was founded in 1963 and is headquartered in Asheville, North Carolina.