Critical Comparison: SuperValu (SVU) and The Competition
SuperValu (NYSE: SVU) is one of 23 public companies in the “Food Retail & Distribution” industry, but how does it contrast to its peers? We will compare SuperValu to similar companies based on the strength of its valuation, earnings, analyst recommendations, institutional ownership, profitability, dividends and risk.
Insider & Institutional Ownership
56.2% of shares of all “Food Retail & Distribution” companies are owned by institutional investors. 1.7% of SuperValu shares are owned by company insiders. Comparatively, 17.7% of shares of all “Food Retail & Distribution” companies 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.
Volatility & Risk
SuperValu has a beta of 2.11, suggesting that its stock price is 111% more volatile than the S&P 500. Comparatively, SuperValu’s peers have a beta of 0.93, suggesting that their average stock price is 7% less volatile than the S&P 500.
This is a summary of current ratings and recommmendations for SuperValu and its peers, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
SuperValu presently has a consensus target price of $33.60, indicating a potential upside of 54.48%. As a group, “Food Retail & Distribution” companies have a potential upside of 3.89%. Given SuperValu’s stronger consensus rating and higher probable upside, equities analysts plainly believe SuperValu is more favorable than its peers.
This table compares SuperValu and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares SuperValu and its peers gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|SuperValu||$12.72 billion||$461.00 million||1.36|
|SuperValu Competitors||$21.39 billion||$989.23 million||38.25|
SuperValu’s peers have higher revenue and earnings than SuperValu. SuperValu 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.
SuperValu peers beat SuperValu on 8 of the 13 factors compared.
SuperValu Company Profile
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.
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