Analyzing United Natural Foods (UNFI) and Delhaize Group SA (DEG)
United Natural Foods (NASDAQ: UNFI) and Delhaize Group SA (NYSE:DEG) are both consumer staples companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, risk, valuation, earnings, institutional ownership, analyst recommendations and profitability.
Delhaize Group SA pays an annual dividend of $0.35 per share and has a dividend yield of 1.2%. United Natural Foods does not pay a dividend. Delhaize Group SA pays out 29.4% of its earnings in the form of a dividend.
This table compares United Natural Foods and Delhaize Group SA’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|United Natural Foods||1.38%||8.21%||4.46%|
|Delhaize Group SA||1.77%||7.11%||3.43%|
This is a breakdown of recent ratings and target prices for United Natural Foods and Delhaize Group SA, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|United Natural Foods||3||8||3||0||2.00|
|Delhaize Group SA||0||0||0||0||N/A|
United Natural Foods currently has a consensus price target of $40.85, suggesting a potential upside of 11.69%. Given United Natural Foods’ higher probable upside, equities analysts clearly believe United Natural Foods is more favorable than Delhaize Group SA.
Valuation and Earnings
This table compares United Natural Foods and Delhaize Group SA’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|United Natural Foods||$9.15 billion||0.20||$316.02 million||$2.49||14.69|
|Delhaize Group SA||N/A||N/A||N/A||$1.19||23.62|
United Natural Foods has higher revenue and earnings than Delhaize Group SA. United Natural Foods 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.
Risk and Volatility
United Natural Foods has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500. Comparatively, Delhaize Group SA has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500.
United Natural Foods beats Delhaize Group SA on 8 of the 10 factors compared between the two stocks.
United Natural Foods Company Profile
United Natural Foods, Inc. is a distributor and retailer of natural, organic and specialty products. The Company’s segments include Wholesale and Other. The Wholesale segment is engaged in the national distribution of natural, organic and specialty foods, produce and related products in the United States and Canada. The Other segment includes a retail division, which engages in the sale of natural foods and related products to the general public through retail storefronts on the east coast of the United States; a manufacturing division, which engages in importing, roasting and packaging of nuts, seeds, dried fruit and snack items, and its branded product lines. Its operations consist of three operating divisions: Wholesale Division, Retail Division, and Manufacturing and Branded Products divisions. As of July 30, 2016, the Company had offered 100,000 natural, organic and specialty foods, and non-food products, consisting of national, regional and private-label brands.
Delhaize Group SA Company Profile
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.
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