Analyzing Kenvue (NYSE:KVUE) and Grocery Outlet (NASDAQ:GO)

Kenvue (NYSE:KVUE) and Grocery Outlet (NASDAQ:GO) are both consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, profitability, risk, institutional ownership, dividends, valuation and earnings.

Risk & Volatility

Kenvue has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500. Comparatively, Grocery Outlet has a beta of 0.29, indicating that its share price is 71% less volatile than the S&P 500.

Valuation and Earnings

This table compares Kenvue and Grocery Outlet”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kenvue	$15.46 billion	2.01	$1.03 billion	$0.74	21.87
Grocery Outlet	$4.51 billion	0.31	$39.47 million	$0.07	203.43

Kenvue has higher revenue and earnings than Grocery Outlet. Kenvue is trading at a lower price-to-earnings ratio than Grocery Outlet, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

97.6% of Kenvue shares are owned by institutional investors. Comparatively, 99.9% of Grocery Outlet shares are owned by institutional investors. 0.2% of Kenvue shares are owned by insiders. Comparatively, 4.5% of Grocery Outlet shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Kenvue and Grocery Outlet, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kenvue	1	12	5	1	2.32
Grocery Outlet	2	6	4	1	2.31

Kenvue presently has a consensus target price of $20.17, suggesting a potential upside of 24.61%. Grocery Outlet has a consensus target price of $16.27, suggesting a potential upside of 14.27%. Given Kenvue’s stronger consensus rating and higher probable upside, equities analysts clearly believe Kenvue is more favorable than Grocery Outlet.

Profitability

This table compares Kenvue and Grocery Outlet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kenvue	9.37%	20.06%	7.78%
Grocery Outlet	0.18%	6.34%	2.35%

Summary

Kenvue beats Grocery Outlet on 11 of the 14 factors compared between the two stocks.

About Kenvue

Kenvue Inc. operates as a consumer health company worldwide. The company operates through three segments: Self Care, Skin Health and Beauty, and Essential Health. The Self Care segment offers cough, cold and allergy, pain care, digestive health, smoking cessation, eye care, and other products under the Tylenol, Motrin, Benadryl, Nicorette, Zarbee's, ORSLTM, Rhinocort, Calpol, and Zyrtec brands. The Skin Health and Beauty segment provides face and body care, hair, sun, and other care products under the Neutrogena, Aveeno, Dr.Ci:Labo, Le Petit Marseillais, Lubriderm, Rogaine, and OGX brand names. The Essential Health segment offers oral and baby, women's health, wound, and other care products under the Listerine, Johnson's, Band-Aid, and Stayfree, o.b., tampons, Carefree, and Desitin Diaper Rash brands. The company was incorporated in 2022 and is headquartered in Skillman, New Jersey.

About Grocery Outlet

Grocery Outlet Holding Corp. operates as a retailer of consumables and fresh products sold through independently operated stores in the United States. Its stores offer products in various categories, such as dairy and deli, produce, floral, fresh meat, seafood products, grocery, general merchandise, health and beauty care, frozen food, beer and wine, and ethnic products. The company was founded in 1946 and is headquartered in Emeryville, California.