Financial Survey: Target (NYSE:TGT) & United Natural Foods (NYSE:UNFI)

Target (NYSE:TGT) and United Natural Foods (NYSE:UNFI) are both consumer staples companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, profitability, dividends and analyst recommendations.

Valuation and Earnings

This table compares Target and United Natural Foods”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Target	$104.78 billion	0.67	$3.71 billion	$9.63	16.04
United Natural Foods	$31.15 billion	0.09	$84.00 million	$1.34	35.62

Target has higher revenue and earnings than United Natural Foods. Target is trading at a lower price-to-earnings ratio than United Natural Foods, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Target and United Natural Foods, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Target	3	15	12	1	2.35
United Natural Foods	0	7	2	0	2.22

Target currently has a consensus target price of $159.33, indicating a potential upside of 3.18%. United Natural Foods has a consensus target price of $52.00, indicating a potential upside of 8.94%. Given United Natural Foods’ higher probable upside, analysts clearly believe United Natural Foods is more favorable than Target.

Institutional & Insider Ownership

79.7% of Target shares are held by institutional investors. Comparatively, 87.6% of United Natural Foods shares are held by institutional investors. 0.1% of Target shares are held by insiders. Comparatively, 2.4% of United Natural Foods shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Target and United Natural Foods’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Target	4.08%	23.23%	6.41%
United Natural Foods	0.27%	10.51%	2.28%

Volatility and Risk

Target has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500. Comparatively, United Natural Foods has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500.

Summary

Target beats United Natural Foods on 11 of the 15 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 United Natural Foods

United Natural Foods, Inc., together with its subsidiaries, distributes natural, organic, specialty, produce, and conventional grocery and non-food products in the United States and Canada. It operates in two segments, Wholesale and Retail. The company offers grocery and general merchandise, produce, perishables and frozen foods, wellness and personal care items, and bulk and foodservice products. It also provides nuts, dried fruit, seeds, trail mixes, granola, natural and organic snack items, and confections under the Woodstock Farms Manufacturing name; organic, non-GMO project verified, and specialty food and non-food items under the Blue Marble brand name; pet food under the WILD HARVEST brand name; and various products under the ESSENTIAL EVERYDAY, SHOPPERS VALUE, Field Day, EQUALINE, CULINARY CIRCLE, and STONE RIDGE CREAMERY brand names. In addition, the company provides home, health and beauty care, and pharmacy products, as well as private label products through a network of Cub Foods and Shoppers retail grocery stores; and retail store support, pricing strategy, shelf and planogram management, advertising, couponing, ecommerce, consumer convenience, store design, equipment sourcing, electronic payments processing, network and data hosting, point-of-sale hardware and software, automation tools, sustainability, and administrative back-office solution services. Further, it offers consumer and trade marketing programs, and programs to support suppliers in understanding its markets. The company serves chains, independent retailers, and supernatural chains, as well as foodservice, ecommerce, conventional military business, and other sales customers. United Natural Foods, Inc. was founded in 1976 and is headquartered in Providence, Rhode Island.