United Natural Foods (NYSE:UNFI) vs. Walmart (NASDAQ:WMT) Head-To-Head Analysis

United Natural Foods (NYSE:UNFI) and Walmart (NASDAQ:WMT) are both consumer staples companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, institutional ownership, profitability, valuation and earnings.

Earnings and Valuation

This table compares United Natural Foods and Walmart”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
United Natural Foods	$31.78 billion	0.09	-$118.00 million	($0.66)	-71.24
Walmart	$713.16 billion	1.25	$21.89 billion	$2.85	39.25

Walmart has higher revenue and earnings than United Natural Foods. United Natural Foods is trading at a lower price-to-earnings ratio than Walmart, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares United Natural Foods and Walmart’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
United Natural Foods	-0.12%	7.42%	1.57%
Walmart	3.13%	21.25%	7.60%

Volatility & Risk

United Natural Foods has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500. Comparatively, Walmart has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for United Natural Foods and Walmart, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Natural Foods	1	6	2	0	2.11
Walmart	0	5	30	1	2.89

United Natural Foods currently has a consensus target price of $47.86, indicating a potential upside of 1.78%. Walmart has a consensus target price of $138.56, indicating a potential upside of 23.88%. Given Walmart’s stronger consensus rating and higher possible upside, analysts plainly believe Walmart is more favorable than United Natural Foods.

Insider & Institutional Ownership

87.6% of United Natural Foods shares are held by institutional investors. Comparatively, 26.8% of Walmart shares are held by institutional investors. 2.4% of United Natural Foods shares are held by company insiders. Comparatively, 0.1% of Walmart shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Walmart beats United Natural Foods on 12 of the 15 factors compared between the two stocks.

About United Natural Foods

United Natural Foods, Inc., together with its subsidiaries, distributes natural, organic, specialty, produce, and conventional grocery and non-food products in the United States and Canada. It operates in two segments, Wholesale and Retail. The company offers grocery and general merchandise, produce, perishables and frozen foods, wellness and personal care items, and bulk and foodservice products. It also provides nuts, dried fruit, seeds, trail mixes, granola, natural and organic snack items, and confections under the Woodstock Farms Manufacturing name; organic, non-GMO project verified, and specialty food and non-food items under the Blue Marble brand name; pet food under the WILD HARVEST brand name; and various products under the ESSENTIAL EVERYDAY, SHOPPERS VALUE, Field Day, EQUALINE, CULINARY CIRCLE, and STONE RIDGE CREAMERY brand names. In addition, the company provides home, health and beauty care, and pharmacy products, as well as private label products through a network of Cub Foods and Shoppers retail grocery stores; and retail store support, pricing strategy, shelf and planogram management, advertising, couponing, ecommerce, consumer convenience, store design, equipment sourcing, electronic payments processing, network and data hosting, point-of-sale hardware and software, automation tools, sustainability, and administrative back-office solution services. Further, it offers consumer and trade marketing programs, and programs to support suppliers in understanding its markets. The company serves chains, independent retailers, and supernatural chains, as well as foodservice, ecommerce, conventional military business, and other sales customers. United Natural Foods, Inc. was founded in 1976 and is headquartered in Providence, Rhode Island.

About Walmart

Walmart Inc. engages in the operation of retail, wholesale, other units, and eCommerce worldwide. The company operates through three segments: Walmart U.S., Walmart International, and Sam's Club. It operates supercenters, supermarkets, hypermarkets, warehouse clubs, cash and carry stores, and discount stores under Walmart and Walmart Neighborhood Market brands; membership-only warehouse clubs; ecommerce websites, such as walmart.com.mx, walmart.ca, flipkart.com, PhonePe and other sites; and mobile commerce applications. The company offers grocery and consumables, including dairy, meat, bakery, deli, produce, dry, chilled or frozen packaged foods, alcoholic and nonalcoholic beverages, floral, snack foods, candy, other grocery items, health and beauty aids, paper goods, laundry and home care, baby care, pet supplies, and other consumable items; fuel, tobacco and other categories. It is also involved in the provision of health and wellness products covering pharmacy, optical and hearing services, and over-the-counter drugs and other medical products; and home and apparel including home improvement, outdoor living, gardening, furniture, apparel, jewelry, tools and power equipment, housewares, toys, seasonal items, mattresses and tire and battery centers. In addition, the company offers consumer electronics and accessories, software, video games, office supplies, appliances, and third-party gift cards. Further, it operates digital payment platforms; and offers financial services and related products, including money transfers, bill payments, money orders, check cashing, prepaid access, co-branded credit cards, installment lending, and earned wage access. Additionally, the company markets lines of merchandise under private brands, including Allswell, Athletic Works, Equate, and Free Assembly. The company was formerly known as Wal-Mart Stores, Inc. and changed its name to Walmart Inc. in February 2018. Walmart Inc. was founded in 1945 and is based in Bentonville, Arkansas.