Kroger Company (The) (NYSE: KR) is one of 23 public companies in the “Food Retail & Distribution” industry, but how does it contrast to its peers? We will compare Kroger Company (The) to related companies based on the strength of its risk, institutional ownership, dividends, analyst recommendations, earnings, valuation and profitability.

Risk & Volatility

Kroger Company (The) has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500. Comparatively, Kroger Company (The)’s peers have a beta of 0.93, meaning that their average stock price is 7% less volatile than the S&P 500.

Profitability

This table compares Kroger Company (The) and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kroger Company (The) 1.32% 28.04% 4.94%
Kroger Company (The) Competitors 0.82% 32.88% 4.20%

Insider and Institutional Ownership

74.6% of Kroger Company (The) shares are owned by institutional investors. Comparatively, 56.1% of shares of all “Food Retail & Distribution” companies are owned by institutional investors. 0.9% of Kroger Company (The) shares are owned by company insiders. Comparatively, 17.7% of shares of all “Food Retail & Distribution” companies are owned 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.

Dividends

Kroger Company (The) pays an annual dividend of $0.50 per share and has a dividend yield of 2.3%. Kroger Company (The) pays out 30.3% of its earnings in the form of a dividend. As a group, “Food Retail & Distribution” companies pay a dividend yield of 2.4% and pay out 143.1% of their earnings in the form of a dividend. Kroger Company (The) has raised its dividend for 8 consecutive years.

Valuation & Earnings

This table compares Kroger Company (The) and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Kroger Company (The) $118.05 billion $5.38 billion 13.07
Kroger Company (The) Competitors $21.37 billion $977.24 million 37.93

Kroger Company (The) has higher revenue and earnings than its peers. Kroger Company (The) is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of current ratings for Kroger Company (The) and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kroger Company (The) 1 15 8 0 2.29
Kroger Company (The) Competitors 702 1425 1408 22 2.21

Kroger Company (The) currently has a consensus price target of $28.86, indicating a potential upside of 33.81%. As a group, “Food Retail & Distribution” companies have a potential upside of 3.80%. Given Kroger Company (The)’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Kroger Company (The) is more favorable than its peers.

Summary

Kroger Company (The) beats its peers on 8 of the 15 factors compared.

About Kroger Company (The)

The Kroger Co. (Kroger) manufactures and processes food for sale in its supermarkets. The Company operates supermarkets, multi-department stores, jewelry stores and convenience stores throughout the United States. As of January 28, 2017, it had operated approximately 4,000 owned or leased supermarkets, convenience stores, fine jewelry stores, distribution warehouses and food production plants through divisions, subsidiaries or affiliates. These facilities are located throughout the United States. As of January 28, 2017, Kroger operated, either directly or through its subsidiaries, 2,796 supermarkets under a range of local banner names, of which 2,255 had pharmacies and 1,445 had fuel centers. As of January 28, 2017, the Company offered ClickList and Harris Teeter ExpressLane, personalized, order online, pick up at the store services at 637 of its supermarkets. P$$T, Check This Out and Heritage Farm are the three brands. Its other brands include Simple Truth and Simple Truth Organic.

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