Critical Survey: Performance Food Group (PFGC) versus US Foods (USFD)
Performance Food Group (NYSE: PFGC) and US Foods (NYSE:USFD) are both mid-cap retail/wholesale companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, earnings, valuation and dividends.
This is a summary of recent ratings and recommmendations for Performance Food Group and US Foods, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Performance Food Group||0||4||5||0||2.56|
Valuation and Earnings
This table compares Performance Food Group and US Foods’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Performance Food Group||$16.76 billion||0.19||$96.30 million||$1.03||28.98|
|US Foods||$22.92 billion||0.30||$209.79 million||$1.17||25.80|
US Foods has higher revenue and earnings than Performance Food Group. US Foods is trading at a lower price-to-earnings ratio than Performance Food Group, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Performance Food Group has a beta of -0.21, meaning that its share price is 121% less volatile than the S&P 500. Comparatively, US Foods has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500.
Insider and Institutional Ownership
82.4% of Performance Food Group shares are owned by institutional investors. Comparatively, 97.0% of US Foods shares are owned by institutional investors. 3.7% of Performance Food Group shares are owned by company insiders. Comparatively, 1.6% of US Foods shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This table compares Performance Food Group and US Foods’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Performance Food Group||0.62%||15.02%||3.60%|
US Foods beats Performance Food Group on 11 of the 14 factors compared between the two stocks.
Performance Food Group Company Profile
Performance Food Group Company, through its subsidiaries, markets and distributes food and food-related products. The Company operates through three segments: Performance Foodservice, PFG Customized and Vistar. The Performance Foodservice segment distributes a range of national brands, customer brands, and branded food and food-related products. It sells to independent or street, and multi-unit or chain, restaurants and other institutions. Its PFG Customized segment provides service to family and casual dining restaurant chains, and fast casual and quick service restaurant chains. Its Vistar segment specializes in distributing candy, snacks, beverages and other items nationally to the vending, office coffee service, theater, hospitality and other channels. Its products include a range of frozen foods, such as meats, fully prepared appetizers and entrees, and desserts; a range of canned and dry foods; fresh meats; dairy products; beverage products, and snack and other products.
US Foods Company Profile
US Foods Holding Corp. is a holding company. The Company is a foodservice distributor in the United States. The Company, through US Foods, Inc. (USF), markets and primarily distributes fresh, frozen and dry food and non-food products to foodservice customers throughout the United States. These customers include independently owned single and multi-unit restaurants, regional concepts, national restaurant chains, hospitals, nursing homes, hotels and motels, country clubs, government and military organizations, colleges and universities, and retail locations. As of December 31, 2016, the Company provided approximately 400,000 fresh, frozen, and dry food stock-keeping units (SKUs), as well as non-food items, sourced from over 5,000 suppliers. As of January 31, 2017, it maintained 75 primary operating facilities, consisting of its 60 distribution centers and other supporting facilities.
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