Krispy Kreme Doughnuts (NYSE: KKD) and US Foods (NYSE:USFD) are both non-cyclical consumer goods & services companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, profitability, institutional ownership, analyst recommendations, risk and valuation.
Valuation and Earnings
This table compares Krispy Kreme Doughnuts and US Foods’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Krispy Kreme Doughnuts||N/A||N/A||N/A||$0.47||44.68|
|US Foods||$22.92 billion||0.29||$209.79 million||$1.17||25.54|
This is a breakdown of current ratings and price targets for Krispy Kreme Doughnuts and US Foods, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Krispy Kreme Doughnuts||0||0||0||0||N/A|
US Foods has a consensus price target of $33.38, suggesting a potential upside of 11.70%. Given US Foods’ higher probable upside, analysts clearly believe US Foods is more favorable than Krispy Kreme Doughnuts.
Insider & Institutional Ownership
97.1% of US Foods shares are held by institutional investors. 1.6% of US Foods shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares Krispy Kreme Doughnuts and US Foods’ 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%|
Volatility and Risk
Krispy Kreme Doughnuts has a beta of 1.52, indicating that its share price is 52% more volatile than the S&P 500. Comparatively, US Foods has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500.
US Foods beats Krispy Kreme Doughnuts on 6 of the 11 factors compared between the two stocks.
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.
US Foods 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.
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