Reviewing Albertsons Companies (NYSE:ACI) and Warby Parker (NYSE:WRBY)

Warby Parker (NYSE:WRBY) and Albertsons Companies (NYSE:ACI) are both consumer staples companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, earnings, profitability, analyst recommendations, risk and institutional ownership.

Insider and Institutional Ownership

93.2% of Warby Parker shares are held by institutional investors. Comparatively, 71.4% of Albertsons Companies shares are held by institutional investors. 18.2% of Warby Parker shares are held by company insiders. Comparatively, 1.4% of Albertsons Companies shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Warby Parker and Albertsons Companies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Warby Parker	0.08%	1.96%	1.01%
Albertsons Companies	1.20%	36.39%	4.45%

Risk & Volatility

Warby Parker has a beta of 2.06, meaning that its share price is 106% more volatile than the S&P 500. Comparatively, Albertsons Companies has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Warby Parker and Albertsons Companies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Warby Parker	0	10	9	0	2.47
Albertsons Companies	1	5	10	0	2.56

Warby Parker currently has a consensus price target of $24.53, indicating a potential upside of 33.30%. Albertsons Companies has a consensus price target of $23.43, indicating a potential upside of 32.78%. Given Warby Parker’s higher possible upside, equities research analysts clearly believe Warby Parker is more favorable than Albertsons Companies.

Earnings & Valuation

This table compares Warby Parker and Albertsons Companies”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Warby Parker	$850.58 million	2.29	-$20.39 million	$0.01	1,840.50
Albertsons Companies	$80.39 billion	0.12	$958.60 million	$1.69	10.44

Albertsons Companies has higher revenue and earnings than Warby Parker. Albertsons Companies is trading at a lower price-to-earnings ratio than Warby Parker, indicating that it is currently the more affordable of the two stocks.

Summary

Albertsons Companies beats Warby Parker on 8 of the 14 factors compared between the two stocks.

About Warby Parker

Warby Parker Inc. provides eyewear products in the United States and Canada. The company offers eyeglasses, sunglasses, light-responsive lenses, blue-light-filtering lenses, non-prescription lenses, and contact lenses. It also provides accessories, such as cases, lenses kit with anti-fog spray, pouches, and anti-fog lens spray through its retail stores, website, and mobile apps. In addition, the company offers eye exams and vision tests. Warby Parker Inc. was incorporated in 2009 and is headquartered in New York, New York.

About Albertsons Companies

Albertsons Companies, Inc., through its subsidiaries, engages in the operation of food and drug stores in the United States. The company’s food and drug retail stores offer grocery products, general merchandise, health and beauty care products, pharmacy, fuel, and other items and services. It also manufactures and processes food products for sale in stores. It operates stores under various banners, including Albertsons, Safeway, Vons, Pavilions, Randalls, Tom Thumb, Carrs, Jewel-Osco, Acme, Shaw’s, Star Market, United Supermarkets, Market Street, Haggen, Kings Food Markets, and Balducci’s Food Lovers Market; and pharmacies, in-store branded coffee shops, adjacent fuel centers, distribution centers, and manufacturing facilities, as well as various digital platforms. Albertsons Companies, Inc. was founded in 1860 and is headquartered in Boise, Idaho. Albertsons Companies, Inc. operates as a subsidiary of Albertsons Investor Holdings LLC.