Head to Head Review: Delhaize Group SA (DEG) & United Natural Foods (UNFI)
Delhaize Group SA (NYSE: DEG) and United Natural Foods (NASDAQ:UNFI) are both non-cyclical consumer goods & services companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, institutional ownership, risk, earnings, profitability, analyst recommendations and valuation.
This table compares Delhaize Group SA and United Natural Foods’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Delhaize Group SA||1.77%||7.11%||3.43%|
|United Natural Foods||1.38%||8.21%||4.46%|
Earnings and Valuation
This table compares Delhaize Group SA and United Natural Foods’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Delhaize Group SA||N/A||N/A||N/A||$1.19||23.62|
|United Natural Foods||$9.15 billion||0.20||$316.02 million||$2.49||14.41|
United Natural Foods has higher revenue and earnings than Delhaize Group SA. United Natural Foods is trading at a lower price-to-earnings ratio than Delhaize Group SA, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Delhaize Group SA has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500. Comparatively, United Natural Foods has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500.
Delhaize Group SA pays an annual dividend of $0.35 per share and has a dividend yield of 1.2%. United Natural Foods does not pay a dividend. Delhaize Group SA pays out 29.4% of its earnings in the form of a dividend.
This is a breakdown of recent ratings and target prices for Delhaize Group SA and United Natural Foods, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Delhaize Group SA||0||0||1||0||3.00|
|United Natural Foods||3||9||3||0||2.00|
United Natural Foods has a consensus target price of $40.79, indicating a potential upside of 13.67%. Given United Natural Foods’ higher possible upside, analysts clearly believe United Natural Foods is more favorable than Delhaize Group SA.
United Natural Foods beats Delhaize Group SA on 8 of the 11 factors compared between the two stocks.
About Delhaize Group SA
Delhaize le Lion de Leeuw BV (Belgium Branch), formerly Delhaize Group SA, is a Belgium-based food retailer. The Company operates through three segments: the United States, including Food Lion and Hannaford banners; Belgium, including Delhaize Le Lion and AD Delhaize banners, and Southeastern Europe (SEE), including Alfa Beta, Mega Image and Shop&Go banners. The Company is principally engaged in the operation of food supermarkets through Company-operated, affiliated and franchised stores. Affiliated stores are with its banners that are operated by independent third parties to whom the Company sells its products at wholesale prices. Its store network also includes other store formats, such as proximity, cash and carry, and specialty stores. The Company has stores located in the United States (Northeast, Southeast and Mid-Atlantic), Belgium, Luxembourg, Greece, Serbia, Romania and Indonesia. The Company operates over 3,510 stores.
About United Natural Foods
United Natural Foods, Inc. is a distributor and retailer of natural, organic and specialty products. The Company’s segments include Wholesale and Other. The Wholesale segment is engaged in the national distribution of natural, organic and specialty foods, produce and related products in the United States and Canada. The Other segment includes a retail division, which engages in the sale of natural foods and related products to the general public through retail storefronts on the east coast of the United States; a manufacturing division, which engages in importing, roasting and packaging of nuts, seeds, dried fruit and snack items, and its branded product lines. Its operations consist of three operating divisions: Wholesale Division, Retail Division, and Manufacturing and Branded Products divisions. As of July 30, 2016, the Company had offered 100,000 natural, organic and specialty foods, and non-food products, consisting of national, regional and private-label brands.
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