Comparing Chefs’ Warehouse (NASDAQ:CHEF) and Albertsons Companies (NYSE:ACI)

Albertsons Companies (NYSE:ACI) and Chefs’ Warehouse (NASDAQ:CHEF) are both mid-cap consumer staples companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, profitability, valuation, analyst recommendations, institutional ownership and risk.

Institutional & Insider Ownership

71.3% of Albertsons Companies shares are owned by institutional investors. Comparatively, 91.6% of Chefs’ Warehouse shares are owned by institutional investors. 1.2% of Albertsons Companies shares are owned by insiders. Comparatively, 11.1% of Chefs’ Warehouse shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Albertsons Companies and Chefs’ Warehouse”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Albertsons Companies	$83.17 billion	0.07	$217.40 million	($0.11)	-116.32
Chefs’ Warehouse	$4.51 billion	1.00	$72.36 million	$2.33	44.54

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Albertsons Companies and Chefs’ Warehouse, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Albertsons Companies	4	10	2	0	1.88
Chefs’ Warehouse	0	2	5	0	2.71

Albertsons Companies currently has a consensus target price of $13.42, suggesting a potential upside of 4.86%. Chefs’ Warehouse has a consensus target price of $120.17, suggesting a potential upside of 15.80%. Given Chefs’ Warehouse’s stronger consensus rating and higher possible upside, analysts plainly believe Chefs’ Warehouse is more favorable than Albertsons Companies.

Risk & Volatility

Albertsons Companies has a beta of 0.38, meaning that its stock price is 62% less volatile than the S&P 500. Comparatively, Chefs’ Warehouse has a beta of 1.47, meaning that its stock price is 47% more volatile than the S&P 500.

Profitability

This table compares Albertsons Companies and Chefs’ Warehouse’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Albertsons Companies	-0.06%	52.17%	3.57%
Chefs’ Warehouse	2.27%	17.48%	5.48%

Summary

Chefs’ Warehouse beats Albertsons Companies on 11 of the 14 factors compared between the two stocks.

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.

About Chefs’ Warehouse

The Chefs’ Warehouse, Inc., together with its subsidiaries, distributes specialty food and center-of-the-plate products in the United States, the Middle East, and Canada. The company’s product portfolio includes specialty food products, such as artisan charcuterie, specialty cheeses, unique oils and vinegars, truffles, caviar, chocolate, and pastry products; and center-of-the-plate products consisting of custom cut beef, seafood, and hormone-free poultry, as well as broadline food products comprising cooking oils, butter, eggs, milk, and flour. The company serves menu-driven independent restaurants, fine dining establishments, country clubs, hotels, caterers, culinary schools, bakeries, patisseries, chocolatiers, cruise lines, casinos, and specialty food stores. It markets its center-of-the-plate products directly to consumers through a mail and e-commerce platform. The Chefs’ Warehouse, Inc. was founded in 1985 and is headquartered in Ridgefield, Connecticut.