Performance Food Group (NYSE: PFGC) and Kroger Company (The) (NYSE:KR) are both mid-cap retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, earnings, risk, dividends, valuation, analyst recommendations and profitability.
Risk and Volatility
Performance Food Group has a beta of -0.27, suggesting that its stock price is 127% less volatile than the S&P 500. Comparatively, Kroger Company (The) has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500.
Institutional & Insider Ownership
78.7% of Performance Food Group shares are held by institutional investors. Comparatively, 75.8% of Kroger Company (The) shares are held by institutional investors. 3.7% of Performance Food Group shares are held by insiders. Comparatively, 0.9% of Kroger Company (The) shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Kroger Company (The) pays an annual dividend of $0.50 per share and has a dividend yield of 2.4%. Performance Food Group does not pay a dividend. Kroger Company (The) pays out 30.3% of its earnings in the form of a dividend. Performance Food Group has increased its dividend for 8 consecutive years.
This table compares Performance Food Group and Kroger Company (The)’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Performance Food Group||0.57%||14.73%||3.48%|
|Kroger Company (The)||1.32%||28.04%||4.94%|
This is a breakdown of recent recommendations for Performance Food Group and Kroger Company (The), as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Performance Food Group||0||6||5||0||2.45|
|Kroger Company (The)||0||16||8||0||2.33|
Performance Food Group currently has a consensus price target of $29.00, suggesting a potential upside of 2.84%. Kroger Company (The) has a consensus price target of $28.82, suggesting a potential upside of 37.23%. Given Kroger Company (The)’s higher possible upside, analysts clearly believe Kroger Company (The) is more favorable than Performance Food Group.
Earnings & Valuation
This table compares Performance Food Group and Kroger Company (The)’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Performance Food Group||$16.76 billion||0.18||$342.30 million||$0.93||30.32|
|Kroger Company (The)||$118.05 billion||0.16||$5.56 billion||$1.65||12.73|
Kroger Company (The) has higher revenue and earnings than Performance Food Group. Kroger Company (The) is trading at a lower price-to-earnings ratio than Performance Food Group, indicating that it is currently the more affordable of the two stocks.
Kroger Company (The) beats Performance Food Group on 10 of the 17 factors compared between the two stocks.
About Performance Food Group
Performance Food Group Company, through its subsidiaries, markets and distributes food and food-related products. The Company operates through three segments: Performance Foodservice, PFG Customized and Vistar. The Performance Foodservice segment distributes a range of national brands, customer brands, and branded food and food-related products. It sells to independent or street, and multi-unit or chain, restaurants and other institutions. Its PFG Customized segment provides service to family and casual dining restaurant chains, and fast casual and quick service restaurant chains. Its Vistar segment specializes in distributing candy, snacks, beverages and other items nationally to the vending, office coffee service, theater, hospitality and other channels. Its products include a range of frozen foods, such as meats, fully prepared appetizers and entrees, and desserts; a range of canned and dry foods; fresh meats; dairy products; beverage products, and snack and other products.
About Kroger Company (The)
The Kroger Co. (Kroger) manufactures and processes food for sale in its supermarkets. The Company operates supermarkets, multi-department stores, jewelry stores and convenience stores throughout the United States. As of January 28, 2017, it had operated approximately 4,000 owned or leased supermarkets, convenience stores, fine jewelry stores, distribution warehouses and food production plants through divisions, subsidiaries or affiliates. These facilities are located throughout the United States. As of January 28, 2017, Kroger operated, either directly or through its subsidiaries, 2,796 supermarkets under a range of local banner names, of which 2,255 had pharmacies and 1,445 had fuel centers. As of January 28, 2017, the Company offered ClickList and Harris Teeter ExpressLane, personalized, order online, pick up at the store services at 637 of its supermarkets. P$$T, Check This Out and Heritage Farm are the three brands. Its other brands include Simple Truth and Simple Truth Organic.
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