Delhaize Group SA (NYSE: DEG) and Weis Markets (NYSE:WMK) 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 risk, institutional ownership, dividends, valuation, earnings, profitability and analyst recommendations.

Profitability

This table compares Delhaize Group SA and Weis Markets’ 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%
Weis Markets 2.42% 8.89% 5.94%

Valuation and Earnings

This table compares Delhaize Group SA and Weis Markets’ revenue, earnings per share (EPS) 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
Weis Markets $3.40 billion 0.34 $173.90 million $3.05 14.10

Weis Markets has higher revenue and earnings than Delhaize Group SA. Weis Markets 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.

Analyst Ratings

This is a breakdown of current ratings for Delhaize Group SA and Weis Markets, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Delhaize Group SA 0 0 0 0 N/A
Weis Markets 0 0 0 0 N/A

Insider and Institutional Ownership

32.0% of Weis Markets shares are owned by institutional investors. 26.9% of Weis Markets shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Delhaize Group SA has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500. Comparatively, Weis Markets has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500.

Dividends

Delhaize Group SA pays an annual dividend of $0.35 per share and has a dividend yield of 1.2%. Weis Markets pays an annual dividend of $1.20 per share and has a dividend yield of 2.8%. Delhaize Group SA pays out 29.4% of its earnings in the form of a dividend. Weis Markets pays out 39.3% 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.

Summary

Weis Markets beats Delhaize Group SA on 8 of the 10 factors compared between the two stocks.

Delhaize Group SA Company Profile

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.

Weis Markets Company Profile

Weis Markets, Inc. is engaged principally in the retail sale of food in Pennsylvania and surrounding states. The Company’s retail food stores sell groceries, dairy products, frozen foods, meats, seafood, fresh produce, floral, pharmacy services, deli products, prepared foods, bakery products, beer and wine, fuel and general merchandise items, such as health and beauty care and household products. As of December 31, 2016, it had owned and operated approximately 204 retail food stores. The majority of the Company’s stores are concentrated in central and northeast Pennsylvania, central Maryland, suburban Washington, District of Columbia and Baltimore regions and New York’s Southern Tier. As of December 31, 2016, it had operated four stores in Delaware, 50 stores in Maryland, five stores in New Jersey, nine stores in New York, 121 stores in Pennsylvania, 13 stores in Virginia and two stores in West Virginia, for a total of 204 retail food stores operating under the Weis Markets name.

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