Albertsons Companies (NYSE:ACI – Get Free Report) and Dollar Tree (NASDAQ:DLTR – Get Free Report) are both consumer staples companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, institutional ownership, earnings, profitability and valuation.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Albertsons Companies and Dollar Tree, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Albertsons Companies | 4 | 8 | 5 | 0 | 2.06 |
| Dollar Tree | 4 | 12 | 10 | 0 | 2.23 |
Albertsons Companies presently has a consensus target price of $15.31, suggesting a potential upside of 26.35%. Dollar Tree has a consensus target price of $122.82, suggesting a potential downside of 5.29%. Given Albertsons Companies’ higher probable upside, equities analysts clearly believe Albertsons Companies is more favorable than Dollar Tree.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Albertsons Companies | 0.08% | 45.59% | 3.83% |
| Dollar Tree | 6.51% | 35.19% | 9.28% |
Volatility & Risk
Albertsons Companies has a beta of 0.42, suggesting that its share price is 58% less volatile than the S&P 500. Comparatively, Dollar Tree has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500.
Earnings and Valuation
This table compares Albertsons Companies and Dollar Tree”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Albertsons Companies | $83.17 billion | 0.07 | $217.40 million | $0.08 | 151.44 |
| Dollar Tree | $19.41 billion | 1.28 | $1.28 billion | $6.40 | 20.26 |
Dollar Tree has lower revenue, but higher earnings than Albertsons Companies. Dollar Tree is trading at a lower price-to-earnings ratio than Albertsons Companies, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
71.3% of Albertsons Companies shares are held by institutional investors. Comparatively, 97.4% of Dollar Tree shares are held by institutional investors. 1.2% of Albertsons Companies shares are held by insiders. Comparatively, 7.1% of Dollar Tree shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Summary
Dollar Tree beats Albertsons Companies on 10 of the 14 factors compared between the two stocks.
About Albertsons Companies
Albertsons Companies, Inc., through its subsidiaries, engages in the operation of food and drug stores in the United States. The company’s food and drug retail stores offer grocery products, general merchandise, health and beauty care products, pharmacy, fuel, and other items and services. It also manufactures and processes food products for sale in stores. It operates stores under various banners, including Albertsons, Safeway, Vons, Pavilions, Randalls, Tom Thumb, Carrs, Jewel-Osco, Acme, Shaw’s, Star Market, United Supermarkets, Market Street, Haggen, Kings Food Markets, and Balducci’s Food Lovers Market; and pharmacies, in-store branded coffee shops, adjacent fuel centers, distribution centers, and manufacturing facilities, as well as various digital platforms. Albertsons Companies, Inc. was founded in 1860 and is headquartered in Boise, Idaho. Albertsons Companies, Inc. operates as a subsidiary of Albertsons Investor Holdings LLC.
About Dollar Tree
Dollar Tree, Inc. operates retail discount stores. The company operates in two segments, Dollar Tree and Family Dollar. The Dollar Tree segment offers merchandise at the fixed price of $ 1.25. It provides consumable merchandise, which includes everyday consumables, such as household paper and chemicals, food, candy, health, personal care products, and frozen and refrigerated food; variety merchandise comprising toys, durable housewares, gifts, stationery, party goods, greeting cards, softlines, arts and crafts supplies, and other items; and seasonal goods that include Christmas, Easter, Halloween, and Valentine's Day merchandise. It operates stores under the Dollar Tree and Dollar Tree Canada brands, as well as distribution centers in the United States and Canada. The Family Dollar segment operates general merchandise retail discount stores that offer consumable merchandise, which comprise food and beverages, tobacco, health and personal care, household chemicals, paper products, hardware and automotive supplies, diapers, batteries, and pet food and supplies; and home products, including housewares, home décor, and giftware, as well as domestics, such as comforters, sheets, and towels. It also provides apparel and accessories merchandise comprising clothing, fashion accessories, and shoes; and seasonal and electronics merchandise that include Christmas, Easter, Halloween, and Valentine's Day merchandise, as well as personal electronics, which comprise pre-paid cellular phones and services, stationery and school supplies, and toys. Dollar Tree, Inc. was founded in 1986 and is based in Chesapeake, Virginia.
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