Kroger (NYSE:KR – Get Free Report) and Metro (OTCMKTS:MTRAF – Get Free Report) are both large-cap consumer staples companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, dividends, valuation, earnings, profitability and analyst recommendations.
Insider and Institutional Ownership
80.9% of Kroger shares are owned by institutional investors. 0.4% of Kroger shares are owned 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.
Valuation and Earnings
This table compares Kroger and Metro”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Kroger | $147.64 billion | 0.28 | $1.02 billion | $1.84 | 38.51 |
| Metro | $15.74 billion | 0.92 | $727.05 million | $3.04 | 22.89 |
Kroger has higher revenue and earnings than Metro. Metro is trading at a lower price-to-earnings ratio than Kroger, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Kroger and Metro’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Kroger | 0.73% | 49.90% | 6.28% |
| Metro | 4.01% | 14.24% | 6.80% |
Dividends
Kroger pays an annual dividend of $1.56 per share and has a dividend yield of 2.2%. Metro pays an annual dividend of $1.14 per share and has a dividend yield of 1.6%. Kroger pays out 84.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Metro pays out 37.5% of its earnings in the form of a dividend. Kroger has raised its dividend for 20 consecutive years. Kroger is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Analyst Ratings
This is a breakdown of current ratings for Kroger and Metro, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Kroger | 0 | 9 | 12 | 0 | 2.57 |
| Metro | 0 | 1 | 3 | 0 | 2.75 |
Kroger presently has a consensus price target of $70.35, suggesting a potential downside of 0.72%. Given Kroger’s higher probable upside, equities research analysts plainly believe Kroger is more favorable than Metro.
Summary
Kroger beats Metro on 9 of the 16 factors compared between the two stocks.
About Kroger
The Kroger Co. is a U.S. grocery retailer founded in Cincinnati, Ohio, in 1883 by Bernard Kroger. It operates supermarkets and other grocery formats across the United States under banners including Kroger, Ralphs, Fred Meyer, Harris Teeter, King Soopers, and Smith’s. Alongside groceries and household essentials, Kroger stores offer services such as pharmacies and fuel centers. The company also sells products under its own private-label brands and produces many of those items through its food manufacturing operations.
About Metro
Metro Inc. is a Canadian food and pharmacy retailer serving customers primarily in Quebec and Ontario. Its grocery banners include Metro and Metro Plus, discount stores under the Super C and Food Basics names, and specialty food retailers such as Adonis. The company also provides online grocery shopping and operates food distribution and logistics services. In pharmacy, Metro operates and supports stores under banners including Jean Coutu and Brunet, as well as Metro Pharmacy. Its network includes both company-operated and franchised or affiliated locations.
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