Reviewing Weis Markets (WMK) and Smart & Final (SFS)

Weis Markets (NYSE: WMK) and Smart & Final (NYSE:SFS) are both small-cap retail/wholesale companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.

Profitability

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This table compares Weis Markets and Smart & Final’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Weis Markets 2.84% 5.17% 3.48%
Smart & Final -3.04% 5.12% 1.38%

Insider and Institutional Ownership

33.2% of Weis Markets shares are owned by institutional investors. 27.0% of Weis Markets shares are owned by company insiders. Comparatively, 9.6% of Smart & Final shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Weis Markets has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500. Comparatively, Smart & Final has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Weis Markets and Smart & Final, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Weis Markets 0 0 0 0 N/A
Smart & Final 1 4 3 0 2.25

Smart & Final has a consensus price target of $10.38, suggesting a potential upside of 95.75%. Given Smart & Final’s higher probable upside, analysts clearly believe Smart & Final is more favorable than Weis Markets.

Valuation and Earnings

This table compares Weis Markets and Smart & Final’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Weis Markets $3.47 billion 0.34 $98.41 million N/A N/A
Smart & Final $4.57 billion 0.08 -$138.91 million $0.34 15.59

Weis Markets has higher earnings, but lower revenue than Smart & Final.

Dividends

Weis Markets pays an annual dividend of $1.20 per share and has a dividend yield of 2.8%. Smart & Final does not pay a dividend.

Summary

Weis Markets beats Smart & Final on 9 of the 13 factors compared between the two stocks.

Weis Markets Company Profile

Weis Markets, Inc. engages in the retail sale of food in Pennsylvania and surrounding states. The company's retail food stores sell groceries, dairy products, frozen foods, meats, seafood, fresh produce, floral, pharmacy services, deli products, prepared foods, bakery products, beer and wine, and fuel; and general merchandise items, such as health and beauty care, and household products. It operates stores primarily under the Weis Markets trade name, as well as trademarks for its product lines and promotions, such as Weis, Weis 2 Go, Weis Wonder Chicken, Weis Great Meals Start Here, Weis Gas-n-Go, and Weis Nutri-Facts. As of March 13, 2018, the company operated 205 retail food stores in Pennsylvania, Maryland, Delaware, New Jersey, New York, Virginia, and West Virginia. Weis Markets, Inc. was founded in 1912 and is based in Sunbury, Pennsylvania.

Smart & Final Company Profile

Smart & Final Stores, Inc. operates as a food retailer in the United States. It operates in two segments, Smart & Final, and Cash & Carry Smart Foodservice. The company operates non-membership warehouse-style grocery stores under the Smart & Final banner in California, Arizona, and Nevada, as well as under the Cash & Carry Smart Foodservice banner in Washington, Oregon, Northern California, Idaho, Nevada, Montana, and Utah. Its stores offer fresh perishables and everyday grocery items, such as produce, meat and deli, dairy and cheese, grocery, and beverage products, as well as paper and packaging, and restaurant equipment and janitorial supplies. The company also provides various private label products under the First Street, Sun Harvest, Simply Value, La Romanella, Montecito, Iris, and Ambiance brands. It sells its products to household and business customers; restaurants; caterers; and various other foodservice businesses, such as food trucks and coffee houses through vendors and suppliers. As of December 31, 2017, it operated 323 stores, including 260 Smart & Final stores and 63 Cash & Carry Smart Foodservice stores. Smart & Final Stores, Inc. was founded in 1871 and is based in Commerce, California.

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