Delhaize Group (NYSE:DEG) versus SuperValu (SVU) Financial Contrast

SuperValu (NYSE: SVU) and Delhaize Group (NYSE:DEG) are both consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, profitability, earnings, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and price targets for SuperValu and Delhaize Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SuperValu 1 6 2 0 2.11
Delhaize Group 0 0 0 0 N/A

SuperValu presently has a consensus price target of $26.29, suggesting a potential upside of 39.00%. Given SuperValu’s higher possible upside, analysts plainly believe SuperValu is more favorable than Delhaize Group.

Profitability

This table compares SuperValu and Delhaize Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SuperValu 4.08% 41.33% 2.32%
Delhaize Group 1.77% 7.11% 3.43%

Valuation and Earnings

This table compares SuperValu and Delhaize Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SuperValu $12.48 billion 0.06 $650.00 million $14.54 1.30
Delhaize Group N/A N/A N/A $1.17 24.03

SuperValu has higher revenue and earnings than Delhaize Group. SuperValu is trading at a lower price-to-earnings ratio than Delhaize Group, indicating that it is currently the more affordable of the two stocks.

Dividends

Delhaize Group pays an annual dividend of $0.35 per share and has a dividend yield of 1.2%. SuperValu does not pay a dividend. Delhaize Group pays out 29.9% of its earnings in the form of a dividend.

Insider and Institutional Ownership

83.3% of SuperValu shares are owned by institutional investors. 1.7% of SuperValu shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

SuperValu beats Delhaize Group on 9 of the 11 factors compared between the two stocks.

SuperValu Company Profile

Supervalu Inc. is a wholesale distributor to independent retail customers across the United States. The Company’s segments include Wholesale and Retail. The Company offers a range of advertised brand name and private-label products, including grocery (both perishable and nonperishable), general merchandise and home, health and beauty care, and pharmacy, which are sold through Company-operated and licensed Retail stores to shoppers and through its Wholesale segment to independent retail customers. The Company’s Wholesale segment provides wholesale distribution of products to independent retail customers. Wholesale is organized and operated through two geographic regions: East and West. As of February 27, 2016, the Company conducted its Retail operations through a total of 200 stores primarily organized under five regionally-based retail banners of Cub Foods, Shoppers Food & Pharmacy, Shop ‘n Save, Farm Fresh and Hornbacher’s, as well as two Rainbow and two County Market stores.

Delhaize Group Company Profile

Delhaize le Lion de Leeuw BV (Belgium Branch), formerly Delhaize Group SA, is a Belgium-based food retailer. The Company operates through three segments: the United States, including Food Lion and Hannaford banners; Belgium, including Delhaize Le Lion and AD Delhaize banners, and Southeastern Europe (SEE), including Alfa Beta, Mega Image and Shop&Go banners. The Company is principally engaged in the operation of food supermarkets through Company-operated, affiliated and franchised stores. Affiliated stores are with its banners that are operated by independent third parties to whom the Company sells its products at wholesale prices. Its store network also includes other store formats, such as proximity, cash and carry, and specialty stores. The Company has stores located in the United States (Northeast, Southeast and Mid-Atlantic), Belgium, Luxembourg, Greece, Serbia, Romania and Indonesia. The Company operates over 3,510 stores.

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