Contrasting US Foods (USFD) & Its Rivals

US Foods (NYSE: USFD) is one of 22 publicly-traded companies in the “Food Retail & Distribution” industry, but how does it weigh in compared to its competitors? We will compare US Foods to related businesses based on the strength of its institutional ownership, earnings, dividends, valuation, profitability, analyst recommendations and risk.

Profitability

This table compares US Foods and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
US Foods 1.11% 12.64% 3.61%
US Foods Competitors 1.01% 7.34% 4.27%

Institutional and Insider Ownership

96.9% of US Foods shares are held by institutional investors. Comparatively, 68.5% of shares of all “Food Retail & Distribution” companies are held by institutional investors. 1.6% of US Foods shares are held by company insiders. Comparatively, 14.2% of shares of all “Food Retail & Distribution” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares US Foods and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
US Foods $22.92 billion $209.79 million 27.44
US Foods Competitors $21.17 billion $332.40 million 562.30

US Foods has higher revenue, but lower earnings than its competitors. US Foods is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of current recommendations and price targets for US Foods and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
US Foods 0 3 6 0 2.67
US Foods Competitors 652 1372 1426 25 2.24

US Foods currently has a consensus price target of $31.75, indicating a potential downside of 1.09%. As a group, “Food Retail & Distribution” companies have a potential upside of 6.56%. Given US Foods’ competitors higher possible upside, analysts clearly believe US Foods has less favorable growth aspects than its competitors.

US Foods Company Profile

US Foods Holding Corp. is a holding company. The Company is a foodservice distributor in the United States. The Company, through US Foods, Inc. (USF), markets and primarily distributes fresh, frozen and dry food and non-food products to foodservice customers throughout the United States. These customers include independently owned single and multi-unit restaurants, regional concepts, national restaurant chains, hospitals, nursing homes, hotels and motels, country clubs, government and military organizations, colleges and universities, and retail locations. As of December 31, 2016, the Company provided approximately 400,000 fresh, frozen, and dry food stock-keeping units (SKUs), as well as non-food items, sourced from over 5,000 suppliers. As of January 31, 2017, it maintained 75 primary operating facilities, consisting of its 60 distribution centers and other supporting facilities.

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