US Foods Holding Corp. (NYSE: USFD) and SuperValu (NYSE:SVU) are both consumer staples companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, valuation, institutional ownership, profitability, earnings and dividends.

Volatility & Risk

US Foods Holding Corp. has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500. Comparatively, SuperValu has a beta of 2.29, meaning that its share price is 129% more volatile than the S&P 500.

Valuation & Earnings

This table compares US Foods Holding Corp. and SuperValu’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
US Foods Holding Corp. $22.92 billion 0.27 $209.79 million $1.17 23.47
SuperValu $12.48 billion 0.05 $650.00 million ($0.56) -29.32

SuperValu has higher revenue, but lower earnings than US Foods Holding Corp.. SuperValu is trading at a lower price-to-earnings ratio than US Foods Holding Corp., indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares US Foods Holding Corp. and SuperValu’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
US Foods Holding Corp. 1.11% 12.64% 3.61%
SuperValu 4.08% 41.33% 2.32%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for US Foods Holding Corp. and SuperValu, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
US Foods Holding Corp. 0 3 7 0 2.70
SuperValu 1 6 2 0 2.11

US Foods Holding Corp. currently has a consensus target price of $31.67, indicating a potential upside of 15.32%. SuperValu has a consensus target price of $26.29, indicating a potential upside of 60.08%. Given SuperValu’s higher probable upside, analysts plainly believe SuperValu is more favorable than US Foods Holding Corp..

Summary

US Foods Holding Corp. beats SuperValu on 7 of the 12 factors compared between the two stocks.

US Foods Holding Corp. Company Profile

US Foods Holding Corp. is a holding company. The Company is a foodservice distributor in the United States. The Company, through US Foods, Inc. (USF), markets and primarily distributes fresh, frozen and dry food and non-food products to foodservice customers throughout the United States. These customers include independently owned single and multi-unit restaurants, regional concepts, national restaurant chains, hospitals, nursing homes, hotels and motels, country clubs, government and military organizations, colleges and universities, and retail locations. As of December 31, 2016, the Company provided approximately 400,000 fresh, frozen, and dry food stock-keeping units (SKUs), as well as non-food items, sourced from over 5,000 suppliers. As of January 31, 2017, it maintained 75 primary operating facilities, consisting of its 60 distribution centers and other supporting facilities.

SuperValu Company Profile

Supervalu Inc. is a wholesale distributor to independent retail customers across the United States. The Company’s segments include Wholesale and Retail. The Company offers a range of advertised brand name and private-label products, including grocery (both perishable and nonperishable), general merchandise and home, health and beauty care, and pharmacy, which are sold through Company-operated and licensed Retail stores to shoppers and through its Wholesale segment to independent retail customers. The Company’s Wholesale segment provides wholesale distribution of products to independent retail customers. Wholesale is organized and operated through two geographic regions: East and West. As of February 27, 2016, the Company conducted its Retail operations through a total of 200 stores primarily organized under five regionally-based retail banners of Cub Foods, Shoppers Food & Pharmacy, Shop ‘n Save, Farm Fresh and Hornbacher’s, as well as two Rainbow and two County Market stores.

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