Axfood AB (publ) (OTCMKTS:AXFOY) & Natural Grocers by Vitamin Cottage (NYSE:NGVC) Financial Comparison

Natural Grocers by Vitamin Cottage (NYSE:NGVC) and Axfood AB (publ) (OTCMKTS:AXFOY) are both retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, institutional ownership, dividends, risk, earnings, analyst recommendations and profitability.

Insider & Institutional Ownership

32.0% of Natural Grocers by Vitamin Cottage shares are owned by institutional investors. 59.4% of Natural Grocers by Vitamin Cottage shares are owned by 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.

Profitability

This table compares Natural Grocers by Vitamin Cottage and Axfood AB (publ)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Natural Grocers by Vitamin Cottage	2.29%	16.69%	4.13%
Axfood AB (publ)	N/A	N/A	N/A

Dividends

Natural Grocers by Vitamin Cottage pays an annual dividend of $0.40 per share and has a dividend yield of 2.5%. Axfood AB (publ) pays an annual dividend of $4.91 per share and has a dividend yield of 19.5%. Natural Grocers by Vitamin Cottage pays out 34.2% of its earnings in the form of a dividend. Axfood AB (publ) pays out 48.0% 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.

Valuation and Earnings

This table compares Natural Grocers by Vitamin Cottage and Axfood AB (publ)’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Natural Grocers by Vitamin Cottage	$1.14 billion	0.32	$23.24 million	$1.17	13.83
Axfood AB (publ)	N/A	N/A	N/A	$10.22	2.47

Natural Grocers by Vitamin Cottage has higher revenue and earnings than Axfood AB (publ). Axfood AB (publ) is trading at a lower price-to-earnings ratio than Natural Grocers by Vitamin Cottage, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings for Natural Grocers by Vitamin Cottage and Axfood AB (publ), as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Natural Grocers by Vitamin Cottage	0	0	0	0	N/A
Axfood AB (publ)	1	0	0	0	1.00

Summary

Natural Grocers by Vitamin Cottage beats Axfood AB (publ) on 8 of the 10 factors compared between the two stocks.

About Natural Grocers by Vitamin Cottage

Natural Grocers by Vitamin Cottage, Inc., together with its subsidiaries, retails natural and organic groceries, and dietary supplements in the United States. The company's stores offer natural and organic grocery products, such as organic produce; private label repackaged bulk products, including dried fruits, nuts, grains, granolas, teas, herbs, and spices, as well as peanut and almond butters; private label products comprising grocery staples, household products, bulk foods, and vitamins and dietary supplements, as well as organic eggs, organic flavored coffee, and organic mustard; dry, frozen, and canned groceries; meat and seafood products; dairy products, dairy substitutes, and eggs; prepared foods; bread and baked products; beverages; and beer, wine, and hard cider products. Its stores also provide name-brand supplements, as well as private label dietary supplements; body care products consisting of cosmetics, skin care, hair care, fragrance, and personal care products containing natural and organic ingredients; pet care and food products; books and handouts; household and general merchandise, including cleaning supplies, paper products, and dish and laundry soaps, as well as other common household products, such as diapers; and books and handouts. The company operates its retail stores under the Natural Grocers by Vitamin Cottage trademark, as well as Vitamin Cottage Natural Grocers and Health Hotline trademarks. The company also offers science-based nutrition education programs to help customers make informed health and nutrition choices. Natural Grocers by Vitamin Cottage, Inc. was founded in 1955 and is headquartered in Lakewood, Colorado.

About Axfood AB (publ)

Axfood AB (publ) engages in the food retail and wholesale businesses primarily in Sweden. It operates through four segments: Willys, Hemköp, Dagab, and Snabbgross. The company sells groceries through Willys, HANDLAR'N, Hemköp, and Eurocash store chains. It is also involved in the e-commerce business; and provision of private label products. In addition, it offers home delivery of meal kits under the Middagsfrid name, as well as operates Urban Deli, a combination of restaurant and market hall; Apohem, an online retail pharmacy; Matöppe, a personal grocery store and the retailer-owned mini-mart; Snabbgriss, a restaurant; and Tempo, a mini-mart format of retailer-owned stores. The company serves restaurants, fastfood operators, and cafés; and retailer-owned stores, mini-marts, and other convenience retailers. Axfood AB (publ) was founded in 1958 and is headquartered in Stockholm, Sweden. Axfood AB (publ) operates as a subsidiary of Axretail AB.