Weis Markets (NYSE:WMK – Get Free Report) and PriceSmart (NASDAQ:PSMT – Get Free Report) are both consumer staples companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, dividends, valuation and earnings.
Insider and Institutional Ownership
80.5% of PriceSmart shares are held by institutional investors. 21.6% of Weis Markets shares are held by company insiders. Comparatively, 17.0% of PriceSmart shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Risk & Volatility
Weis Markets has a beta of 0.43, suggesting that its stock price is 57% less volatile than the S&P 500. Comparatively, PriceSmart has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Weis Markets | $4.96 billion | 0.36 | $93.69 million | $4.03 | 18.01 |
| PriceSmart | $5.27 billion | 0.99 | $147.89 million | $5.21 | 32.37 |
PriceSmart has higher revenue and earnings than Weis Markets. Weis Markets is trading at a lower price-to-earnings ratio than PriceSmart, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Weis Markets and PriceSmart’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Weis Markets | 1.99% | 7.40% | 4.97% |
| PriceSmart | 2.82% | 12.16% | 6.67% |
Dividends
Weis Markets pays an annual dividend of $1.36 per share and has a dividend yield of 1.9%. PriceSmart pays an annual dividend of $1.40 per share and has a dividend yield of 0.8%. Weis Markets pays out 33.7% of its earnings in the form of a dividend. PriceSmart pays out 26.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. PriceSmart has increased its dividend for 4 consecutive years.
Analyst Recommendations
This is a breakdown of recent recommendations for Weis Markets and PriceSmart, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Weis Markets | 0 | 0 | 1 | 0 | 3.00 |
| PriceSmart | 0 | 0 | 2 | 0 | 3.00 |
PriceSmart has a consensus target price of $198.00, suggesting a potential upside of 17.40%. Given PriceSmart’s higher possible upside, analysts plainly believe PriceSmart is more favorable than Weis Markets.
Summary
PriceSmart beats Weis Markets on 14 of the 16 factors compared between the two stocks.
About Weis Markets
Weis Markets, Inc. engages in the retail sale of food through a chain of supermarkets in Pennsylvania and surrounding states. The company’s retail food stores sell groceries, dairy products, frozen foods, meats, seafood, fresh produce, floral, pharmacy services, deli products, prepared foods, bakery products, beer and wine, and fuel; and general merchandise items, such as health and beauty care, and household products. It operates stores in Delaware, Maryland, New Jersey, New York, Pennsylvania, Virginia, and West Virginia primarily under the Weis Markets name, as well as Weis, Weis 2 Go, Weis Great Meals Start Here, Weis Gas-n-Go, and Weis Nutri-Facts. Weis Markets, Inc. was founded in 1912 and is based in Sunbury, Pennsylvania.
About PriceSmart
PriceSmart, Inc. owns and operates U.S.-style membership shopping warehouse clubs in the United States, Central America, the Caribbean, and Colombia. The company provides basic and private label consumer products under the Member's Selection brand, including groceries, cleaning supplies, health and beauty aids, meat, produce, deli, seafood, and poultry. It offers electronics, large and small appliances, automotive, hardware, sporting goods, seasonal products, clothing, domestics, and home furnishing products. In addition, the company offers food and bakery services, as well as health services, such as optical, audiology, and pharmacy. Further, it operates an e-commerce platform for online ordering, curbside pickup, and delivery services. PriceSmart, Inc. was incorporated in 1994 and is headquartered in San Diego, California.
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