Village Super Market, Inc. Class A (NASDAQ: VLGEA) and Kroger (NYSE:KR) are both retail/wholesale companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, institutional ownership, earnings and dividends.

Insider & Institutional Ownership

43.8% of Village Super Market, Inc. Class A shares are owned by institutional investors. Comparatively, 81.5% of Kroger shares are owned by institutional investors. 40.2% of Village Super Market, Inc. Class A shares are owned by company insiders. Comparatively, 1.1% of Kroger shares are owned 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.

Dividends

Village Super Market, Inc. Class A pays an annual dividend of $1.00 per share and has a dividend yield of 3.5%. Kroger pays an annual dividend of $0.50 per share and has a dividend yield of 1.9%. Kroger pays out 24.5% of its earnings in the form of a dividend. Kroger has increased its dividend for 9 consecutive years.

Analyst Recommendations

This is a summary of current ratings and target prices for Village Super Market, Inc. Class A and Kroger, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Village Super Market, Inc. Class A 0 0 0 0 N/A
Kroger 0 14 11 0 2.44

Kroger has a consensus price target of $27.38, suggesting a potential upside of 6.58%. Given Kroger’s higher probable upside, analysts plainly believe Kroger is more favorable than Village Super Market, Inc. Class A.

Risk and Volatility

Village Super Market, Inc. Class A has a beta of 0.24, indicating that its share price is 76% less volatile than the S&P 500. Comparatively, Kroger has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500.

Valuation & Earnings

This table compares Village Super Market, Inc. Class A and Kroger’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Village Super Market, Inc. Class A $1.60 billion 0.25 $22.92 million N/A N/A
Kroger $122.66 billion 0.17 $1.91 billion $2.04 12.59

Kroger has higher revenue and earnings than Village Super Market, Inc. Class A.

Profitability

This table compares Village Super Market, Inc. Class A and Kroger’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Village Super Market, Inc. Class A 1.61% 9.80% 6.23%
Kroger 1.55% 29.27% 5.07%

Summary

Kroger beats Village Super Market, Inc. Class A on 8 of the 15 factors compared between the two stocks.

Village Super Market, Inc. Class A Company Profile

Village Super Market, Inc. operates a chain of supermarkets in the United States. Its stores feature specialty departments, such as an on-site bakery, an expanded delicatessen, various natural and organic foods, ethnic and international foods, prepared foods, and pharmacies. The company operates a chain of 29 ShopRite supermarkets, including 18 located in northern New Jersey, 8 located in southern New Jersey, 2 located in Maryland, and 1 located in northeastern Pennsylvania. Village Super Market, Inc. was founded in 1937 and is based in Springfield, New Jersey.

Kroger Company Profile

The Kroger Co., together with its subsidiaries, operates as a retailer in the United States. It also manufactures and processes food products for sale in its supermarkets. The company operates supermarkets, multi-department stores, jewelry stores, and convenience stores. Its combination food and drug stores offer natural food and organic sections, pharmacies, general merchandise, pet centers, fresh seafood, and organic produce; multi-department stores provide general merchandise items, such as apparel, home fashion and furnishings, outdoor living, electronics, automotive products, toys, and fine jewelry; and price impact warehouse stores offer grocery, and health and beauty care items, as well as meat, dairy, baked goods, and fresh produce items. The company's marketplace stores comprise full-service grocery, pharmacy, health and beauty care departments, and perishable goods, as well as general merchandise, including apparel, home goods, and toys; and convenience stores comprise a limited assortment of staple food items and general merchandise, as well as sells fuel. It operates under the banner brands, such as Kroger, Ralphs, Fred Meyer, King Soopers, etc., as well as Simple Truth and Simple Truth Organic brands. As of March 8, 2018, the company operated 2,800 retail food stores under various banner names, as well as an online retail store. The Kroger Co. was founded in 1883 and is based in Cincinnati, Ohio.

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