Ingles Markets, (NASDAQ: IMKTA) and Delhaize Group SA (NYSE:DEG) are both retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitabiliy, dividends, risk, earnings, institutional ownership, analyst recommendations and valuation.

Analyst Ratings

This is a summary of current ratings and recommmendations for Ingles Markets, and Delhaize Group SA, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ingles Markets, 0 0 0 0 N/A
Delhaize Group SA 0 0 1 0 3.00

Dividends

Ingles Markets, pays an annual dividend of $0.66 per share and has a dividend yield of 2.0%. Delhaize Group SA pays an annual dividend of $0.35 per share and has a dividend yield of 1.2%. Ingles Markets, pays out 26.8% of its earnings in the form of a dividend. Delhaize Group SA pays out 29.4% 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. Ingles Markets, is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares Ingles Markets, and Delhaize Group SA’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Ingles Markets, $3.85 billion 0.17 $230.63 million $2.46 13.11
Delhaize Group SA N/A N/A N/A $1.19 23.62

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

Profitability

This table compares Ingles Markets, and Delhaize Group SA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ingles Markets, 1.20% 9.73% 2.71%
Delhaize Group SA 1.77% 7.11% 3.43%

Volatility and Risk

Ingles Markets, has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, Delhaize Group SA has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500.

Institutional & Insider Ownership

60.1% of Ingles Markets, shares are held by institutional investors. 30.3% of Ingles Markets, shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Ingles Markets, beats Delhaize Group SA on 7 of the 11 factors compared between the two stocks.

About Ingles Markets,

Ingles Markets, Incorporated (Ingles) is a supermarket chain in the southeast United States. The Company’s segments include retail grocery and other. Its other segment consists of fluid dairy operations and shopping center rentals. As of September 24, 2016, the Company operated 201 supermarkets in Georgia, North Carolina, South Carolina, Tennessee, Virginia and Alabama. The Company locates its supermarkets primarily in suburban areas, small towns and rural communities. Ingles supermarkets offer customers a range of food products, including grocery, meat and dairy products, produce, frozen foods and other perishables and non-food products. Its non-food products include fuel centers, pharmacies, health and beauty care products and general merchandise. The Company focuses on selling products to its customers through the development of organic products, bakery departments and prepared foods, including delicatessen sections.

About Delhaize Group SA

Delhaize le Lion de Leeuw BV (Belgium Branch), formerly Delhaize Group SA, is a Belgium-based food retailer. The Company operates through three segments: the United States, including Food Lion and Hannaford banners; Belgium, including Delhaize Le Lion and AD Delhaize banners, and Southeastern Europe (SEE), including Alfa Beta, Mega Image and Shop&Go banners. The Company is principally engaged in the operation of food supermarkets through Company-operated, affiliated and franchised stores. Affiliated stores are with its banners that are operated by independent third parties to whom the Company sells its products at wholesale prices. Its store network also includes other store formats, such as proximity, cash and carry, and specialty stores. The Company has stores located in the United States (Northeast, Southeast and Mid-Atlantic), Belgium, Luxembourg, Greece, Serbia, Romania and Indonesia. The Company operates over 3,510 stores.

Receive News & Stock Ratings for Ingles Markets Incorporated Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Ingles Markets Incorporated and related stocks with our FREE daily email newsletter.