Kroger (NYSE:KR) and North West (OTCMKTS:NNWWF) are both retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.
Institutional & Insider Ownership
81.5% of Kroger shares are owned by institutional investors. 1.1% of Kroger shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This is a summary of recent ratings and target prices for Kroger and North West, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Kroger presently has a consensus target price of $31.36, suggesting a potential upside of 13.84%. Given Kroger’s stronger consensus rating and higher possible upside, research analysts plainly believe Kroger is more favorable than North West.
Earnings & Valuation
This table compares Kroger and North West’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Kroger||$122.66 billion||0.18||$1.91 billion||$2.04||13.50|
Kroger has higher revenue and earnings than North West.
This table compares Kroger and North West’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Kroger pays an annual dividend of $0.56 per share and has a dividend yield of 2.0%. North West does not pay a dividend. Kroger pays out 27.5% of its earnings in the form of a dividend. Kroger has raised its dividend for 10 consecutive years.
Kroger beats North West on 11 of the 12 factors compared between the two stocks.
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.
About North West
The North West Company Inc., through its subsidiaries, engages in the retail of food and everyday products and services to rural communities and urban neighborhood markets in Canada, Alaska, the South Pacific, and the Caribbean. The company's Canadian operations comprise 119 Northern stores, which offers food, financial services, and general merchandise; 6 NorthMart stores that provides fresh foods, apparel, and health products and services; 41 Giant Tiger junior discount stores, which offers family fashion, household products, and food; 16 Quickstop convenience stores that provides ready-to-eat foods, and fuel and related services; 1 Solo Market store for rural market; 1 Valu Lots discount center and direct-to-customer food distribution outlet; and 1 Tim Hortons stand-alone franchise restaurant; 1 Wally's Drug Store; and 2 North West Company Fur Marketing outlets, which offers wild furs, Aboriginal handicrafts, and authentic Canadian heritage products. The Canadian operations also provides contract tele-pharmacist services to rural hospitals and health centers; water and air-based transportation services; and produce and fresh meats to independent grocery stores. Its international operations include 27 AC stores that provides food and general merchandise to remote and rural regions; 12 Cost-U-Less mid-size warehouse stores, which offers discount food and general merchandise; 1 Island Fresh IGA store that provides fresh and prepared foods; 5 Quickstop convenience stores; 5 Riteway food markets; and 1 Cash and Carry store. In addition, the company offers Inuit art services; physician services; healthcare solutions; and a range of financial services, such as credit, debit, pre-paid credit, and gift cards. The North West Company Inc. was founded in 1668 and is based in Winnipeg, Canada.
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