Performance Food Group (NYSE: PFGC) and DAVIDsTEA (NASDAQ:DTEA) are both retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, institutional ownership, profitability, valuation, analyst recommendations, risk and earnings.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Performance Food Group and DAVIDsTEA, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Performance Food Group 0 4 6 0 2.60
DAVIDsTEA 1 3 0 0 1.75

Performance Food Group presently has a consensus price target of $27.98, indicating a potential upside of 4.00%. DAVIDsTEA has a consensus price target of $6.75, indicating a potential upside of 20.54%. Given DAVIDsTEA’s higher probable upside, analysts plainly believe DAVIDsTEA is more favorable than Performance Food Group.

Profitability

This table compares Performance Food Group and DAVIDsTEA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Performance Food Group 0.51% 13.92% 3.26%
DAVIDsTEA -2.57% 2.69% 2.14%

Volatility and Risk

Performance Food Group has a beta of -0.31, meaning that its stock price is 131% less volatile than the S&P 500. Comparatively, DAVIDsTEA has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500.

Institutional and Insider Ownership

83.3% of Performance Food Group shares are owned by institutional investors. Comparatively, 19.8% of DAVIDsTEA shares are owned by institutional investors. 3.5% of Performance Food Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Performance Food Group and DAVIDsTEA’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Performance Food Group $16.71 billion 0.17 $321.40 million $0.83 32.41
DAVIDsTEA N/A N/A N/A ($0.17) -32.94

Performance Food Group has higher revenue and earnings than DAVIDsTEA. DAVIDsTEA is trading at a lower price-to-earnings ratio than Performance Food Group, indicating that it is currently the more affordable of the two stocks.

Summary

Performance Food Group beats DAVIDsTEA on 9 of the 12 factors compared between the two stocks.

About Performance Food Group

Performance Food Group Company, through its subsidiaries, markets and distributes food and food-related products. The Company operates through three segments: Performance Foodservice, PFG Customized and Vistar. The Performance Foodservice segment distributes a range of national brands, customer brands, and branded food and food-related products. It sells to independent or street, and multi-unit or chain, restaurants and other institutions. Its PFG Customized segment provides service to family and casual dining restaurant chains, and fast casual and quick service restaurant chains. Its Vistar segment specializes in distributing candy, snacks, beverages and other items nationally to the vending, office coffee service, theater, hospitality and other channels. Its products include a range of frozen foods, such as meats, fully prepared appetizers and entrees, and desserts; a range of canned and dry foods; fresh meats; dairy products; beverage products, and snack and other products.

About DAVIDsTEA

DAVIDsTEA Inc. is engaged in the retail and online sale of tea, tea accessories, and food and beverages in Canada and in the United States. The Company’s segments include Canada and the U.S. The Company is a branded retailer of specialty tea, offering approximately 150 loose-leaf teas, pre-packaged teas, tea sachets and tea-related gifts, accessories, and food and beverages primarily through approximately 190 DAVIDsTEA stores, which are operated by the Company, and its Website, davidstea.com. Additionally, the Company offers on-the-go tea beverages in its retail stores. The Company’s tea accessories include tea mugs, travel mugs, teacup sets, teapots, tea makers, kettles, infusers, filters, frothers, tins and spoons. The Company offers beverages range from the standard hot or iced tea to its Tea Lattes. The Company’s different flavors of loose-leaf tea span eight tea categories: white, green, oolong, black, pu’erh, mate, rooibos and herbal tea.

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