Kroger Company (The) (NYSE: KR) is one of 23 publicly-traded companies in the “Food Retail & Distribution” industry, but how does it weigh in compared to its competitors? We will compare Kroger Company (The) to similar businesses based on the strength of its dividends, profitability, risk, institutional ownership, analyst recommendations, valuation and earnings.

Analyst Ratings

This is a breakdown of current ratings and price targets for Kroger Company (The) and its competitors, as reported 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 707 1435 1422 22 2.21

Kroger Company (The) currently has a consensus price target of $28.86, indicating a potential upside of 43.89%. As a group, “Food Retail & Distribution” companies have a potential upside of 4.13%. Given Kroger Company (The)’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Kroger Company (The) is more favorable than its competitors.

Valuation & Earnings

This table compares Kroger Company (The) and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Kroger Company (The) $118.05 billion $5.56 billion 12.16
Kroger Company (The) Competitors $21.39 billion $989.23 million 38.25

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

Volatility and Risk

Kroger Company (The) has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, Kroger Company (The)’s competitors have a beta of 0.93, indicating that their average share price is 7% less volatile than the S&P 500.

Dividends

Kroger Company (The) pays an annual dividend of $0.50 per share and has a dividend yield of 2.5%. 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 2.5% and pay out 143.1% of their earnings in the form of a dividend. Kroger Company (The) has increased its dividend for 8 consecutive years. Kroger Company (The) is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

75.8% of Kroger Company (The) shares are held by institutional investors. Comparatively, 62.7% of shares of all “Food Retail & Distribution” companies are held by institutional investors. 0.9% of Kroger Company (The) shares are held by insiders. Comparatively, 19.2% of shares of all “Food Retail & Distribution” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Kroger Company (The) and its competitors’ 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%

Summary

Kroger Company (The) beats its competitors on 9 of the 15 factors compared.

Kroger Company (The) Company Profile

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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