Krispy Kreme Doughnuts (NYSE: KKD) and Weis Markets (NYSE:WMK) are both small-cap non-cyclical consumer goods & services companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, institutional ownership and analyst recommendations.

Dividends

Weis Markets pays an annual dividend of $1.20 per share and has a dividend yield of 3.1%. Krispy Kreme Doughnuts does not pay a dividend. Weis Markets pays out 42.7% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Krispy Kreme Doughnuts and Weis Markets’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Krispy Kreme Doughnuts N/A N/A N/A $0.47 44.68
Weis Markets $3.14 billion 0.33 $87.16 million $2.81 13.60

Weis Markets has higher revenue and earnings than Krispy Kreme Doughnuts. Weis Markets is trading at a lower price-to-earnings ratio than Krispy Kreme Doughnuts, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

32.1% of Weis Markets shares are owned by institutional investors. 26.9% of Weis Markets shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Krispy Kreme Doughnuts and Weis Markets, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Krispy Kreme Doughnuts 0 0 0 0 N/A
Weis Markets 0 0 0 0 N/A

Profitability

This table compares Krispy Kreme Doughnuts and Weis Markets’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Krispy Kreme Doughnuts 6.90% 15.58% 11.41%
Weis Markets 2.16% 8.13% 5.39%

Volatility & Risk

Krispy Kreme Doughnuts has a beta of 1.52, meaning that its stock price is 52% more volatile than the S&P 500. Comparatively, Weis Markets has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500.

About Krispy Kreme Doughnuts

Krispy Kreme Doughnuts, Inc. is a retailer and wholesaler of doughnuts, complementary beverages, and treats and packaged sweets. The Company’s principal business includes owning and franchising Krispy Kreme stores, at which a range of doughnuts, including the Company’s Original Glazed doughnut, together with complementary products, including an array of coffees and other beverages. The Company operates through four business segments: Company Stores, Domestic Franchise, International Franchise and KK Supply Chain. The Company Stores segment includes the doughnut shops operated by the Company. The Domestic Franchise segment consists of the Company’s domestic store franchise operations and the licensing of Krispy Kreme products domestically. The International Franchise segment consists of the Company’s international store franchise operations. The KK Supply Chain segment produces doughnut mixes and manufactures doughnut-making equipment.

About Weis Markets

Weis Markets, Inc. is engaged principally in the retail sale of food in Pennsylvania and surrounding states. The Company’s retail food stores sell groceries, dairy products, frozen foods, meats, seafood, fresh produce, floral, pharmacy services, deli products, prepared foods, bakery products, beer and wine, fuel and general merchandise items, such as health and beauty care and household products. As of December 31, 2016, it had owned and operated approximately 204 retail food stores. The majority of the Company’s stores are concentrated in central and northeast Pennsylvania, central Maryland, suburban Washington, District of Columbia and Baltimore regions and New York’s Southern Tier. As of December 31, 2016, it had operated four stores in Delaware, 50 stores in Maryland, five stores in New Jersey, nine stores in New York, 121 stores in Pennsylvania, 13 stores in Virginia and two stores in West Virginia, for a total of 204 retail food stores operating under the Weis Markets name.

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