SuperValu (NYSE: SVU) and US Foods (NYSE:USFD) are both non-cyclical consumer goods & services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.

Earnings & Valuation

This table compares SuperValu and US Foods’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SuperValu $12.48 billion 0.06 $650.00 million ($0.56) -35.16
US Foods $22.92 billion 0.30 $209.79 million $1.17 25.97

SuperValu has higher earnings, but lower revenue than US Foods. SuperValu is trading at a lower price-to-earnings ratio than US Foods, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

SuperValu has a beta of 2.29, indicating that its stock price is 129% more volatile than the S&P 500. Comparatively, US Foods has a beta of 1.38, indicating that its stock price is 38% more volatile than the S&P 500.

Insider and Institutional Ownership

83.3% of SuperValu shares are owned by institutional investors. Comparatively, 96.9% of US Foods shares are owned by institutional investors. 1.7% of SuperValu shares are owned by insiders. Comparatively, 1.6% of US Foods shares are owned 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.

Profitability

This table compares SuperValu and US Foods’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SuperValu 4.08% 41.33% 2.32%
US Foods 1.11% 12.64% 3.61%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for SuperValu and US Foods, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SuperValu 1 6 2 0 2.11
US Foods 0 3 6 0 2.67

SuperValu currently has a consensus price target of $26.29, suggesting a potential upside of 33.50%. US Foods has a consensus price target of $31.75, suggesting a potential upside of 4.48%. Given SuperValu’s higher probable upside, analysts clearly believe SuperValu is more favorable than US Foods.

Summary

US Foods beats SuperValu on 8 of the 14 factors compared between the two stocks.

About SuperValu

Supervalu Inc. is a wholesale distributor to independent retail customers across the United States. The Company’s segments include Wholesale and Retail. The Company offers a range of advertised brand name and private-label products, including grocery (both perishable and nonperishable), general merchandise and home, health and beauty care, and pharmacy, which are sold through Company-operated and licensed Retail stores to shoppers and through its Wholesale segment to independent retail customers. The Company’s Wholesale segment provides wholesale distribution of products to independent retail customers. Wholesale is organized and operated through two geographic regions: East and West. As of February 27, 2016, the Company conducted its Retail operations through a total of 200 stores primarily organized under five regionally-based retail banners of Cub Foods, Shoppers Food & Pharmacy, Shop ‘n Save, Farm Fresh and Hornbacher’s, as well as two Rainbow and two County Market 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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