Kroger Company (The) (KR) versus Boulder Brands (SMBL) Critical Review
Kroger Company (The) (NYSE: KR) and Boulder Brands (NASDAQ:SMBL) are both retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, profitability, valuation and earnings.
Institutional & Insider Ownership
74.6% of Kroger Company (The) shares are owned by institutional investors. 0.9% of Kroger Company (The) shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Kroger Company (The) and Boulder Brands’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Kroger Company (The)||$118.05 billion||0.16||$5.38 billion||$1.65||12.89|
Kroger Company (The) has higher revenue and earnings than Boulder Brands.
This is a breakdown of current ratings and target prices for Kroger Company (The) and Boulder Brands, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Kroger Company (The)||1||15||8||0||2.29|
Kroger Company (The) currently has a consensus target price of $28.86, indicating a potential upside of 35.70%. Given Kroger Company (The)’s higher possible upside, research analysts plainly believe Kroger Company (The) is more favorable than Boulder Brands.
This table compares Kroger Company (The) and Boulder Brands’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Kroger Company (The)||1.32%||28.04%||4.94%|
Kroger Company (The) pays an annual dividend of $0.50 per share and has a dividend yield of 2.4%. Boulder Brands does not pay a dividend. Kroger Company (The) pays out 30.3% of its earnings in the form of a dividend. Boulder Brands has raised its dividend for 8 consecutive years.
Kroger Company (The) beats Boulder Brands on 9 of the 11 factors compared between the two stocks.
About Kroger Company (The)
The Kroger Co. (Kroger) manufactures and processes food for sale in its supermarkets. The Company operates supermarkets, multi-department stores, jewelry stores and convenience stores throughout the United States. As of January 28, 2017, it had operated approximately 4,000 owned or leased supermarkets, convenience stores, fine jewelry stores, distribution warehouses and food production plants through divisions, subsidiaries or affiliates. These facilities are located throughout the United States. As of January 28, 2017, Kroger operated, either directly or through its subsidiaries, 2,796 supermarkets under a range of local banner names, of which 2,255 had pharmacies and 1,445 had fuel centers. As of January 28, 2017, the Company offered ClickList and Harris Teeter ExpressLane, personalized, order online, pick up at the store services at 637 of its supermarkets. P$$T, Check This Out and Heritage Farm are the three brands. Its other brands include Simple Truth and Simple Truth Organic.
About Boulder Brands
Boulder Brands, Inc. is a natural consumer packaged food company. The Company’s health and wellness platform consists of brands that target specific health trends: the Glutino Food Group and Udi’s Healthy Foods, LLC’s Gluten Free brands for gluten free diets; the Earth Balance brand for plant-based diets; the Level Life brand for diabetic diets; EVOL Food branded foods for consumers seeking convenient foods made with pure and simple ingredients, and the Smart Balance brand for heart healthier diets. The Company distributes its products in all retail channels, including natural, grocery, club and mass merchandise. The Company also has a presence in the foodservice and industrial channels. The Company operates in two segments: Natural and Balance. The Natural segment consists of Udi’s, Glutino and EVOL branded products. The Balance segment consists of Smart Balance, Earth Balance and Level Life branded products.
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