Target (NYSE:TGT) versus Coles Group (OTCMKTS:CLEGF) Critical Review

Target (NYSE:TGT) and Coles Group (OTCMKTS:CLEGF) are both consumer staples companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, earnings, valuation, dividends and profitability.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Target and Coles Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Target	3	18	11	0	2.25
Coles Group	0	2	0	0	2.00

Target presently has a consensus target price of $159.52, indicating a potential downside of 3.79%. Coles Group has a consensus target price of $23.00, indicating a potential upside of 36.50%. Given Coles Group’s higher probable upside, analysts plainly believe Coles Group is more favorable than Target.

Insider and Institutional Ownership

79.7% of Target shares are held by institutional investors. 0.1% of Target shares are held by company 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 Target and Coles Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Target	4.08%	23.23%	6.41%
Coles Group	N/A	N/A	N/A

Valuation and Earnings

This table compares Target and Coles Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Target	$104.78 billion	0.72	$3.71 billion	$9.63	17.22
Coles Group	N/A	N/A	N/A	N/A	N/A

Target has higher revenue and earnings than Coles Group.

Summary

Target beats Coles Group on 8 of the 9 factors compared between the two stocks.

About Target

Target Corporation operates as a general merchandise retailer in the United States. The company offers apparel for women, men, boys, girls, toddlers, and infants and newborns, as well as jewelry, accessories, and shoes; and beauty and personal care, baby gear, cleaning, paper products, and pet supplies. It also provides dry grocery, dairy, frozen food, beverages, candy, snacks, deli, bakery, meat, and food service; electronics, which includes video game hardware and software, toys, entertainment, sporting goods, and luggage; and furniture, lighting, storage, kitchenware, small appliances, home decor, bed and bath, home improvement, school/office supplies, greeting cards and party supplies, and other seasonal merchandise. In addition, the company sells merchandise through periodic design and creative partnerships, and shop-in-shop experience; and in-store amenities. Further, it sells its products through its stores; and digital channels, including Target.com. Target Corporation was incorporated in 1902 and is headquartered in Minneapolis, Minnesota.

About Coles Group

Coles Group Limited operates as a retailer in Australia. It operates through Supermarkets and Liquor segments. The company operates various supermarkets; and coles.com.au, which offers a choice of home delivery, including same-day, overnight drop and go services, and pick up from click and collect locations. Its Coles Financial Services provides insurance, credit cards, and personal loans to Australian families. The company is also involved in the retailing of liquor through its various stores under the Liquorland, First Choice, First Choice Liquor, and Vintage Cellars brand names. In addition, it operates as flybuys loyalty program. The company was formerly known as Coles Myer Ltd. and changed its name to Coles Group Limited. Coles Group Limited was founded in 1914 and is based in Hawthorn East, Australia.