Pantry (NASDAQ: PTRY) and Whole Foods Market (NASDAQ:WFM) are both non-cyclical consumer goods & services companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, dividends, risk, institutional ownership, profitabiliy, analyst recommendations and valuation.

Insider and Institutional Ownership

89.3% of Whole Foods Market shares are held by institutional investors. 1.3% of Whole Foods Market shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

Whole Foods Market pays an annual dividend of $0.72 per share and has a dividend yield of 1.7%. Pantry does not pay a dividend. Whole Foods Market pays out 57.1% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Pantry and Whole Foods Market’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Pantry N/A N/A N/A N/A N/A
Whole Foods Market $15.86 billion 0.84 $1.33 billion $1.26 33.10

Whole Foods Market has higher revenue and earnings than Pantry.

Analyst Ratings

This is a summary of recent recommendations and price targets for Pantry and Whole Foods Market, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pantry 0 0 0 0 N/A
Whole Foods Market 3 19 4 0 2.04

Whole Foods Market has a consensus target price of $36.75, suggesting a potential downside of 11.89%. Given Whole Foods Market’s higher possible upside, analysts plainly believe Whole Foods Market is more favorable than Pantry.

Profitability

This table compares Pantry and Whole Foods Market’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pantry 1.13% 21.76% 4.39%
Whole Foods Market 2.54% 13.72% 7.02%

Summary

Whole Foods Market beats Pantry on 8 of the 10 factors compared between the two stocks.

Pantry Company Profile

The Pantry, Inc. (Pantry) is an independently operated convenience store chain in the southeastern United States. As of June 26, 2014, Pantry operated 1,527 stores in 13 states under a range of banners, including Kangaroo Express, its primary operating banner. The Company stores offer a range of merchandise, fuel and ancillary products and services designed to appeal to the convenience needs of its customers, including fuel, car care products and services, tobacco products, beer, soft drinks, self-service fast food and beverages, publications, dairy products, groceries, health and beauty aids, money orders and other ancillary services. As of September 26, 2013, approximately 32% of its stores were located in coastal/resort areas, such as Jacksonville, Florida, Orlando, Florida/Disney World, Myrtle Beach, South Carolina, Charleston, South Carolina, St. Augustine, Florida, Hilton Head, South Carolina and Gulfport/Biloxi, Mississippi.

Whole Foods Market Company Profile

Whole Foods Market, Inc. is engaged in the business of natural and organic foods supermarket. The Company operates approximately 456 stores in the United States, Canada and the United Kingdom. Its stores have an average size of approximately 39,000 square feet, and are supported by its distribution centers, bake house facilities, commissary kitchens, seafood-processing facilities, a produce procurement center, and a specialty coffee and tea procurement and roasting operation, among others. It offers over 30,000 organic stock keeping units (SKUs), covering various areas of its store, including produce, packaged goods, bulk, frozen, dairy, meat, bakery, prepared foods, coffee, tea, beer, wine, cheese, nutritional supplements, vitamins, body care, pet foods and household goods. The Company’s brands include 365 Everyday Value, Allegro Coffee, Whole Foods Market, Whole Paws, and Engine 2 Plant-Strong. It also offers approximately 400 temporary exclusives.

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