Caseys General Stores (NASDAQ: CASY) and Ingles Markets, (NASDAQ:IMKTA) are both retail/wholesale companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, profitabiliy, risk and institutional ownership.

Dividends

Caseys General Stores pays an annual dividend of $0.96 per share and has a dividend yield of 0.9%. Ingles Markets, pays an annual dividend of $0.66 per share and has a dividend yield of 2.2%. Caseys General Stores pays out 21.4% of its earnings in the form of a dividend. Ingles Markets, pays out 26.8% 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. Ingles Markets, has raised its dividend for 14 consecutive years. Ingles Markets, is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

96.8% of Caseys General Stores shares are held by institutional investors. Comparatively, 60.1% of Ingles Markets, shares are held by institutional investors. 1.3% of Caseys General Stores shares are held by insiders. Comparatively, 30.3% of Ingles Markets, shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Caseys General Stores and Ingles Markets,, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Caseys General Stores 0 6 5 1 2.58
Ingles Markets, 0 0 0 0 N/A

Caseys General Stores currently has a consensus target price of $120.50, indicating a potential upside of 14.90%. Given Caseys General Stores’ higher probable upside, equities analysts plainly believe Caseys General Stores is more favorable than Ingles Markets,.

Volatility & Risk

Caseys General Stores has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500. Comparatively, Ingles Markets, has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500.

Profitability

This table compares Caseys General Stores and Ingles Markets,’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Caseys General Stores 2.36% 14.93% 6.00%
Ingles Markets, 1.20% 9.73% 2.71%

Valuation & Earnings

This table compares Caseys General Stores and Ingles Markets,’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Caseys General Stores $6.64 billion 0.61 $509.54 million $4.48 23.41
Ingles Markets, $3.85 billion 0.16 $230.63 million $2.46 12.24

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

Summary

Caseys General Stores beats Ingles Markets, on 13 of the 17 factors compared between the two stocks.

Caseys General Stores Company Profile

Casey’s General Stores, Inc. and its subsidiaries, operate convenience stores under the name Casey’s General Store in approximately 10 Midwestern states, in Iowa, Missouri, and Illinois. The Company also operates approximately two stores selling primarily tobacco products. The stores carry a range of food, including freshly prepared foods such as pizza, donuts, and sandwiches, beverages, tobacco products, health and beauty aids, automotive products and other nonfood items. The Company operates approximately 1,930 stores. It operates approximately two distribution centers, through which the Company supply grocery and general merchandise items to its stores. Its general store typically carries over 3,000 food and nonfood items. The Company’s stores sell regional brands of dairy and bakery products, and approximately 90% of the stores offer beer. Its non-food items include tobacco products, health and beauty aids, school supplies, housewares, pet supplies, and automotive products.

Ingles Markets, Company Profile

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.

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