Ahold Delhaize (ADRNY) versus Ingles (IMKTA) Financial Analysis

Ahold Delhaize (OTCMKTS: ADRNY) and Ingles (NASDAQ:IMKTA) are both consumer staples companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, valuation, analyst recommendations, institutional ownership and dividends.

Institutional and Insider Ownership

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0.6% of Ahold Delhaize shares are owned by institutional investors. Comparatively, 60.2% of Ingles shares are owned by institutional investors. 29.5% of Ingles shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations for Ahold Delhaize and Ingles, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ahold Delhaize 0 0 0 0 N/A
Ingles 0 0 0 0 N/A

Dividends

Ahold Delhaize pays an annual dividend of $0.65 per share and has a dividend yield of 2.7%. Ingles pays an annual dividend of $0.66 per share and has a dividend yield of 2.0%. Ahold Delhaize pays out 47.1% of its earnings in the form of a dividend. Ingles pays out 24.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Profitability

This table compares Ahold Delhaize and Ingles’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ahold Delhaize 2.92% 10.51% 4.72%
Ingles 2.11% 16.66% 4.93%

Valuation & Earnings

This table compares Ahold Delhaize and Ingles’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ahold Delhaize $71.04 billion 0.42 $2.05 billion $1.38 17.33
Ingles $4.00 billion 0.17 $53.87 million $2.66 12.71

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

Volatility and Risk

Ahold Delhaize has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500. Comparatively, Ingles has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500.

Summary

Ahold Delhaize beats Ingles on 7 of the 13 factors compared between the two stocks.

Ahold Delhaize Company Profile

Koninklijke Ahold Delhaize N.V. operates retail food stores primarily in the United States and Europe. The company's store formats include supermarkets, superstores, online grocery shopping, convenience stores, drugstores, wine and liquor stores, online shopping for general merchandise, and compact hyper and supermarkets. As of December 31, 2017, it operated 6,637 stores primarily under 20 brands serving approximately 50 million customers, as well as online. The company was formerly known as Koninklijke Ahold N.V. and changed its name to Koninklijke Ahold Delhaize N.V. in July 2016. Koninklijke Ahold Delhaize N.V. was founded in 1887 and is headquartered in Zaandam, the Netherlands.

Ingles Company Profile

Ingles Markets, Incorporated operates a chain of supermarkets in the southeast United States. Its supermarkets offer various food products, including grocery, meat and dairy products, produce, frozen foods, and other perishables; and non-food products, such as fuel centers, pharmacies, health and beauty care products, and general merchandise, as well as private label items. The company also provides home meal replacement items, delicatessens, bakeries, floral departments, and greeting cards, as well as organic, beverage, and health-related items. As of September 30, 2017, it operated 190 supermarkets under the Ingles name; and 9 supermarkets under the Sav-Mor name in western North Carolina, western South Carolina, northern Georgia, eastern Tennessee, southwestern Virginia and northeastern Alabama, as well as 103 pharmacies and 97 fuel centers. In addition, it is involved in the fluid dairy operation and shopping center rental businesses. Ingles Markets, Incorporated was founded in 1963 and is headquartered in Black Mountain, North Carolina.

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