Dingdong (Cayman) (NYSE:DDL – Get Free Report) and US Foods (NYSE:USFD – Get Free Report) are both consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, valuation, analyst recommendations, institutional ownership, profitability and dividends.
Institutional & Insider Ownership
24.7% of Dingdong (Cayman) shares are owned by institutional investors. Comparatively, 98.8% of US Foods shares are owned by institutional investors. 29.8% of Dingdong (Cayman) shares are owned by insiders. Comparatively, 0.7% of US Foods shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Dingdong (Cayman) and US Foods”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Dingdong (Cayman) | $3.42 billion | 0.12 | $31.70 million | $0.36 | 4.85 |
| US Foods | $40.34 billion | 0.59 | $676.00 million | $3.58 | 30.67 |
US Foods has higher revenue and earnings than Dingdong (Cayman). Dingdong (Cayman) is trading at a lower price-to-earnings ratio than US Foods, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Dingdong (Cayman) has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500. Comparatively, US Foods has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500.
Analyst Ratings
This is a summary of current recommendations and price targets for Dingdong (Cayman) and US Foods, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Dingdong (Cayman) | 0 | 2 | 0 | 0 | 2.00 |
| US Foods | 0 | 4 | 10 | 1 | 2.80 |
US Foods has a consensus target price of $115.31, indicating a potential upside of 5.03%. Given US Foods’ stronger consensus rating and higher probable upside, analysts clearly believe US Foods is more favorable than Dingdong (Cayman).
Profitability
This table compares Dingdong (Cayman) and US Foods’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Dingdong (Cayman) | 2.19% | 47.37% | 7.61% |
| US Foods | 1.97% | 21.37% | 6.49% |
Summary
US Foods beats Dingdong (Cayman) on 11 of the 15 factors compared between the two stocks.
About Dingdong (Cayman)
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Dingdong (Cayman) Limited is a China-based e-commerce company focused on the online sale and delivery of fresh groceries and everyday food products. Through its Dingdong Fresh platform, the company offers fruits, vegetables, meat, seafood, eggs, dairy products, prepared foods, beverages and household essentials. The company uses a direct-to-consumer model supported by procurement, processing, food preparation and fulfillment operations. Its product offerings include private-label and ready-to-cook foods, with an emphasis on quality control, convenience and rapid delivery.
About US Foods
US Foods Holding Corp. is a foodservice distributor that supplies restaurants and other foodservice businesses across the United States. Its customers include independent restaurants, healthcare and senior-care facilities, hotels, educational institutions, and government organizations. The company distributes a broad range of products, including fresh and frozen foods, meat, seafood, produce, dairy, beverages, and nonfood supplies. It also offers services and digital tools intended to help customers manage menus, purchasing, and kitchen operations.
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