Koninklijke Ahold Delhaize (OTCMKTS:AHODF) & Weis Markets (NYSE:WMK) Critical Survey

Koninklijke Ahold Delhaize (OTCMKTS:AHODF – Get Rating) and Weis Markets (NYSE:WMK – Get Rating) are both consumer defensive companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, institutional ownership and risk.

Valuation and Earnings

This table compares Koninklijke Ahold Delhaize and Weis Markets’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Koninklijke Ahold Delhaize	N/A	N/A	N/A	C$0.66	48.16
Weis Markets	$4.70 billion	0.47	$125.20 million	$4.66	17.67

Weis Markets has higher revenue and earnings than Koninklijke Ahold Delhaize. Weis Markets is trading at a lower price-to-earnings ratio than Koninklijke Ahold Delhaize, indicating that it is currently the more affordable of the two stocks.

Dividends

Koninklijke Ahold Delhaize pays an annual dividend of C$0.40 per share and has a dividend yield of 1.2%. Weis Markets pays an annual dividend of $1.36 per share and has a dividend yield of 1.7%. Koninklijke Ahold Delhaize pays out 60.1% of its earnings in the form of a dividend. Weis Markets pays out 29.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Weis Markets has raised its dividend for 2 consecutive years. Weis Markets is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

29.4% of Koninklijke Ahold Delhaize shares are held by institutional investors. Comparatively, 36.6% of Weis Markets shares are held by institutional investors. 27.0% of Weis Markets shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Koninklijke Ahold Delhaize and Weis Markets’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Koninklijke Ahold Delhaize	N/A	N/A	N/A
Weis Markets	2.67%	9.85%	6.48%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Koninklijke Ahold Delhaize and Weis Markets, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Koninklijke Ahold Delhaize	0	1	2	0	2.67
Weis Markets	0	0	0	0	N/A

Koninklijke Ahold Delhaize currently has a consensus price target of C$30.30, indicating a potential downside of 5.27%. Given Koninklijke Ahold Delhaize’s higher probable upside, equities analysts plainly believe Koninklijke Ahold Delhaize is more favorable than Weis Markets.

Summary

Weis Markets beats Koninklijke Ahold Delhaize on 10 of the 13 factors compared between the two stocks.

About Koninklijke Ahold Delhaize

(Get Rating)

Koninklijke Ahold Delhaize NV engages in the management and operation of supermarkets and e-commerce business. It operates through the following segments: The U.S., Europe, Other Retail, and Global Support Office. The U.S. segment includes Stop & Shop, Food Lion, Giant & Martin’s, Hannaford, Giant Food and Peapod. The Europe segment is consisted of Albert Heijn, Etos, Gall & Gall, bol.com, Delhaize operations in Belgium and Luxembourg.The Other Retail segment handles the firm’s joint ventures. The Global Support Office segment represents global support office operations in the Netherlands, Belgium, Switzerland, and the United States. The company was founded in 1887 and is headquartered in Zaandam, the Netherlands.

About Weis Markets

(Get Rating)

Weis Markets, Inc. engages in the ownership and operation of retail food stores. Its retail stores offer groceries, dairy products, frozen foods, meats, seafood, fresh produce, floral, pharmacy services, deli products, prepared foods, bakery products, beer and wine, fuel, and general merchandise items. The company was founded by Harry Weis and Sigmund Weis in 1912 and is headquartered in Sunbury, PA.