Core-Mark (CORE) versus United Natural Foods (UNFI) Financial Review

Core-Mark (NASDAQ: CORE) and United Natural Foods (NASDAQ:UNFI) are both business services companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, earnings, dividends, profitability, valuation and risk.

Dividends

Core-Mark pays an annual dividend of $0.40 per share and has a dividend yield of 1.9%. United Natural Foods does not pay a dividend. Core-Mark pays out 40.0% of its earnings in the form of a dividend.

Insider and Institutional Ownership

97.8% of Core-Mark shares are held by institutional investors. 2.0% of Core-Mark shares are held by insiders. Comparatively, 1.4% of United Natural Foods shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Core-Mark and United Natural Foods’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Core-Mark $15.69 billion 0.06 $33.50 million $1.00 20.90
United Natural Foods $9.27 billion 0.24 $130.15 million $2.57 17.01

United Natural Foods has lower revenue, but higher earnings than Core-Mark. United Natural Foods is trading at a lower price-to-earnings ratio than Core-Mark, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Core-Mark and United Natural Foods, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Core-Mark 0 3 3 1 2.71
United Natural Foods 4 9 5 0 2.06

Core-Mark currently has a consensus target price of $26.20, indicating a potential upside of 25.36%. United Natural Foods has a consensus target price of $44.67, indicating a potential upside of 2.16%. Given Core-Mark’s stronger consensus rating and higher possible upside, equities analysts clearly believe Core-Mark is more favorable than United Natural Foods.

Risk and Volatility

Core-Mark has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500. Comparatively, United Natural Foods has a beta of 1.44, indicating that its stock price is 44% more volatile than the S&P 500.

Profitability

This table compares Core-Mark and United Natural Foods’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Core-Mark 0.21% 8.84% 2.99%
United Natural Foods 1.61% 8.49% 4.83%

Summary

Core-Mark beats United Natural Foods on 9 of the 17 factors compared between the two stocks.

About Core-Mark

Core-Mark Holding Company, Inc. markets fresh and broad-line supply solutions to the convenience retail industry. The company sells and distributes various food/non-food products, including cigarettes, fast food, candies, snacks, groceries, fresh products, dairy products, breads, beverages, other tobacco products, general merchandise and equipment, and health and beauty care products. Its customers include traditional convenience stores, such as national and super-regional convenience store operators, as well as independently owned convenience stores; and alternative outlets, which include grocery stores, drug stores, big box or supercenter stores, liquor stores, cigarette and tobacco shops, hotel gift shops, military exchanges, college and corporate campuses, casinos, hardware stores, airport concessions, and other specialty and small format stores that carry convenience products. The company offers its products to 45,000 customer locations through a network of distribution centers in the United States and Canada. Core-Mark Holding Company, Inc. was founded in 1888 and is headquartered in South San Francisco, California.

About United Natural Foods

United Natural Foods, Inc., together with its subsidiaries, distributes natural, organic, and specialty foods and non-food products in the United States and Canada. The company operates through three divisions: Wholesale, Retail, and Manufacturing and Branded Products. The Wholesale division offers grocery and general merchandise, produce, perishables and frozen foods, nutritional supplements and sports nutrition, bulk and foodservice products, and personal care products. This segment also distributes an array of specialty protein, cheese, deli, food service, and bakery goods; and organic and conventional produce and non-produce perishable items, and natural and organic specialty and gourmet ethnic products, as well as vitamins and minerals. The Retail division operates 12 natural products retail stores in Florida, Maryland, Massachusetts, and Rhode Island. The Manufacturing and Branded Products division is involved in importing, roasting, packaging, and distributing nuts, dried fruits, seeds, trail mixes, granola, natural and organic snack items, and confections. This segment also provides Blue Marble Brands products on wholesale basis through third-party distributors in organic, natural, and specialty food brands, as well as directly to retailers; and Field Day brand products primarily to customers through its independent natural products retailer channel. The company serves independently owned natural products retailers, supernatural chains, conventional supermarkets, and mass market chains, as well as foodservice, e-commerce, and international customers outside Canada. United Natural Foods, Inc. was founded in 1976 and is headquartered in Providence, Rhode Island.

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