SuperValu (NYSE: SVU) and SpartanNash (NASDAQ:SPTN) are both small-cap consumer staples companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, dividends, risk, institutional ownership and earnings.
Valuation & Earnings
This table compares SuperValu and SpartanNash’s top-line revenue, earnings per share (EPS) and valuation.
||Earnings Per Share
SuperValu has higher revenue and earnings than SpartanNash. SuperValu is trading at a lower price-to-earnings ratio than SpartanNash, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
SuperValu has a beta of 1.29, meaning that its stock price is 29% more volatile than the S&P 500. Comparatively, SpartanNash has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500.
This table compares SuperValu and SpartanNash’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
SpartanNash pays an annual dividend of $0.72 per share and has a dividend yield of 4.0%. SuperValu does not pay a dividend. SpartanNash pays out 34.3% of its earnings in the form of a dividend.
This is a breakdown of current recommendations and price targets for SuperValu and SpartanNash, as reported by MarketBeat.
||Strong Buy Ratings
SuperValu currently has a consensus target price of $24.21, indicating a potential upside of 44.56%. SpartanNash has a consensus target price of $22.20, indicating a potential upside of 23.06%. Given SuperValu’s stronger consensus rating and higher possible upside, research analysts plainly believe SuperValu is more favorable than SpartanNash.
Insider & Institutional Ownership
90.6% of SuperValu shares are owned by institutional investors. Comparatively, 89.7% of SpartanNash shares are owned by institutional investors. 1.7% of SuperValu shares are owned by company insiders. Comparatively, 3.0% of SpartanNash shares are owned 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.
SuperValu beats SpartanNash on 10 of the 16 factors compared between the two stocks.
SuperValu Company Profile
SUPERVALU INC., together with its subsidiaries, operates as a grocery wholesaler and retailer in the United States. The company operates through two segments, Wholesale and Retail. The Wholesale segment engages in the wholesale distribution of various food and non-food products to independent retail customers, such as single and multiple grocery store operators, regional chains, and the military. This segment also provides various services, such as retail store support, advertising, couponing, e-commerce, network and data hosting solutions, and training and certification classes, as well as administrative back-office solutions. As of February 25, 2017, this segment operated approximately 1,902 stores with a network spanning 40 states. The Retail segment operates retail stores that provide groceries and various additional products, including general merchandise, home, health and beauty care, and pharmacy products. This segment operated 217 stores under the Cub Foods, Shoppers Food & Pharmacy, Shop 'n Save, Farm Fresh, and Hornbacher's banners, as well as 2 Rainbow stores. The company's stores offer a range of branded and private-label products comprising perishable and nonperishable grocery products. SUPERVALU INC. was founded in 1871 and is headquartered in Eden Prairie, Minnesota.
SpartanNash Company Profile
SpartanNash Company distributes and retails grocery products. It operates in three segments: Food Distribution, Military, and Retail. The Food Distribution segment offers approximately 60,000 stock-keeping units, such as dry groceries, produce, dairy products, meat, delicatessen items, bakery goods, frozen food, seafood, floral products, general merchandise, beverages, tobacco products, health and beauty care, and pharmacy products to independent retail locations, food service distributors, and corporate-owned retail stores. This segment also offers various value-added services to retailers. The Military segment sells and distributes grocery products to military commissaries and exchanges located in 45 states across the United States and the District of Columbia, Europe, Cuba, Puerto Rico, Italy, Bahrain, Djibouti, and Egypt. The Retail segment primarily operates neighborhood supermarkets. As of December 30, 2017, this segment operated 145 owned retail stores in the Midwest region primarily under the Family Fare Supermarkets, D&W Fresh Markets, VG's Grocery, Dan's Supermarket, and Family Fresh Market banners; and offered pharmacy services in 87 of its stores, as well as operated 31 fuel centers at its retail stores. SpartanNash Company also markets and distributes private brand items primarily under the Our Family, Open Acres, Top Care, Tippy Toes, Full Circle, Culinary Tours, PAWS Premium, Valu Time, Freedom's Choice, and Home Base brands. The company was formerly known as Spartan Stores, Inc. and changed its name to SpartanNash Company in November 2013. SpartanNash Company was founded in 1917 and is headquartered in Grand Rapids, Michigan.
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