Kroger (NYSE: KR) and Bojangles (NASDAQ:BOJA) are both retail/wholesale companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, dividends, risk, profitability and institutional ownership.
Insider & Institutional Ownership
75.7% of Kroger shares are held by institutional investors. Comparatively, 92.7% of Bojangles shares are held by institutional investors. 0.9% of Kroger shares are held by company insiders. Comparatively, 55.3% of Bojangles shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Kroger pays an annual dividend of $0.50 per share and has a dividend yield of 2.1%. Bojangles does not pay a dividend. Kroger pays out 23.7% of its earnings in the form of a dividend. Kroger has increased its dividend for 9 consecutive years.
Volatility and Risk
Kroger has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500. Comparatively, Bojangles has a beta of 1.63, suggesting that its share price is 63% more volatile than the S&P 500.
This table compares Kroger and Bojangles’ net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
This is a breakdown of recent ratings for Kroger and Bojangles, as provided by MarketBeat.
||Strong Buy Ratings
Kroger presently has a consensus target price of $27.32, indicating a potential upside of 16.49%. Bojangles has a consensus target price of $16.14, indicating a potential upside of 14.90%. Given Kroger’s stronger consensus rating and higher possible upside, research analysts clearly believe Kroger is more favorable than Bojangles.
Valuation & Earnings
This table compares Kroger and Bojangles’ top-line revenue, earnings per share (EPS) and valuation.
||Earnings Per Share
Kroger has higher revenue and earnings than Bojangles. Bojangles is trading at a lower price-to-earnings ratio than Kroger, indicating that it is currently the more affordable of the two stocks.
Kroger beats Bojangles on 10 of the 17 factors compared between the two stocks.
Kroger Company Profile
The Kroger Co. (Kroger) manufactures and processes food for sale in its supermarkets. The Company operates supermarkets, multi-department stores, jewelry stores and convenience stores throughout the United States. As of January 28, 2017, it had operated approximately 4,000 owned or leased supermarkets, convenience stores, fine jewelry stores, distribution warehouses and food production plants through divisions, subsidiaries or affiliates. These facilities are located throughout the United States. As of January 28, 2017, Kroger operated, either directly or through its subsidiaries, 2,796 supermarkets under a range of local banner names, of which 2,255 had pharmacies and 1,445 had fuel centers. As of January 28, 2017, the Company offered ClickList and Harris Teeter ExpressLane, personalized, order online, pick up at the store services at 637 of its supermarkets. P$$T, Check This Out and Heritage Farm are the three brands. Its other brands include Simple Truth and Simple Truth Organic.
Bojangles Company Profile
Bojangles’, Inc. is a restaurant operator and franchisor. The Company offers food made from its Southern recipes. The Company’s menu includes its made-from-scratch, buttermilk biscuits baked fresh every 20 minutes; its fresh, never-frozen bone-in fried chicken; its fixin’s; its Bo-Smart menu featuring items, such as salads, grilled chicken sandwiches, roasted chicken bites and fat-free green beans; its freshly baked and delicious sweets menu, and its Legendary Iced Tea. The Company’s food is offered a la carte and in combos. The Company’s chicken, fixin’s, biscuits and Legendary Iced Tea may also be ordered in boxes or family meals, and larger combinations may be offered as tailgate specials or may be packaged in its Big Bo Box. The Company offers Southern style mac ‘n cheese made from two cheeses; fat-free green beans; cole slaw, and mashed potatoes with gravy. Its menu also features salads, sandwiches and its whole meat Roasted Chicken Bites.
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