SuperValu (NYSE: SVU) and Krispy Kreme Doughnuts (NYSE:KKD) are both small-cap non-cyclical consumer goods & services companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, institutional ownership, profitability, dividends, analyst recommendations and valuation.
This table compares SuperValu and Krispy Kreme Doughnuts’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Krispy Kreme Doughnuts||6.90%||15.58%||11.41%|
This is a summary of recent ratings and target prices for SuperValu and Krispy Kreme Doughnuts, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Krispy Kreme Doughnuts||0||0||0||0||N/A|
SuperValu currently has a consensus target price of $26.29, suggesting a potential upside of 33.50%. Given SuperValu’s higher possible upside, analysts clearly believe SuperValu is more favorable than Krispy Kreme Doughnuts.
Valuation & Earnings
This table compares SuperValu and Krispy Kreme Doughnuts’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|SuperValu||$12.48 billion||0.06||$650.00 million||($0.56)||-35.16|
|Krispy Kreme Doughnuts||N/A||N/A||N/A||$0.47||44.68|
SuperValu has higher revenue and earnings than Krispy Kreme Doughnuts. SuperValu is trading at a lower price-to-earnings ratio than Krispy Kreme Doughnuts, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
83.3% of SuperValu shares are held by institutional investors. 1.7% of SuperValu shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Risk & Volatility
SuperValu has a beta of 2.29, indicating that its share price is 129% more volatile than the S&P 500. Comparatively, Krispy Kreme Doughnuts has a beta of 1.52, indicating that its share price is 52% more volatile than the S&P 500.
SuperValu beats Krispy Kreme Doughnuts on 7 of the 10 factors compared between the two stocks.
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.
Krispy Kreme Doughnuts Company Profile
Krispy Kreme Doughnuts, Inc. is a retailer and wholesaler of doughnuts, complementary beverages, and treats and packaged sweets. The Company’s principal business includes owning and franchising Krispy Kreme stores, at which a range of doughnuts, including the Company’s Original Glazed doughnut, together with complementary products, including an array of coffees and other beverages. The Company operates through four business segments: Company Stores, Domestic Franchise, International Franchise and KK Supply Chain. The Company Stores segment includes the doughnut shops operated by the Company. The Domestic Franchise segment consists of the Company’s domestic store franchise operations and the licensing of Krispy Kreme products domestically. The International Franchise segment consists of the Company’s international store franchise operations. The KK Supply Chain segment produces doughnut mixes and manufactures doughnut-making equipment.
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