Head-To-Head Analysis: Woolworths Group (OTCMKTS:WOLWF) & Axfood AB (publ) (OTCMKTS:AXFOY)

Axfood AB (publ) (OTCMKTS:AXFOY) and Woolworths Group (OTCMKTS:WOLWF) are both consumer defensive companies, but which is the superior business? We will compare the two companies based on the strength of their risk, profitability, dividends, institutional ownership, valuation, earnings and analyst recommendations.

Insider & Institutional Ownership

14.5% of Woolworths Group shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Axfood AB (publ) and Woolworths Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Axfood AB (publ)	0	0	0	0	0.00
Woolworths Group	0	1	1	0	2.50

Woolworths Group has a consensus target price of $34.00, indicating a potential upside of 62.37%. Given Woolworths Group’s stronger consensus rating and higher possible upside, analysts clearly believe Woolworths Group is more favorable than Axfood AB (publ).

Dividends

Axfood AB (publ) pays an annual dividend of $4.91 per share and has a dividend yield of 18.0%. Woolworths Group pays an annual dividend of $1.36 per share and has a dividend yield of 6.5%. Axfood AB (publ) pays out 48.0% of its earnings in the form of a dividend. Woolworths Group pays out 69.5% 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. Axfood AB (publ) is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Axfood AB (publ) and Woolworths Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Axfood AB (publ)	N/A	N/A	N/A	$10.22	2.67
Woolworths Group	N/A	N/A	N/A	$1.96	10.71

Axfood AB (publ) is trading at a lower price-to-earnings ratio than Woolworths Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Axfood AB (publ) and Woolworths Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Axfood AB (publ)	N/A	N/A	N/A
Woolworths Group	N/A	N/A	N/A

Summary

Woolworths Group beats Axfood AB (publ) on 5 of the 8 factors compared between the two stocks.

About Axfood AB (publ)

Axfood AB (publ) engages in the food retail and wholesale businesses primarily in Sweden. It operates through four segments: Willys, Hemköp, Dagab, and Snabbgross. The company sells groceries through Willys, HANDLAR'N, Hemköp, and Eurocash store chains. It is also involved in the e-commerce business; and provision of private label products. In addition, it offers home delivery of meal kits under the Middagsfrid name, as well as operates Urban Deli, a combination of restaurant and market hall; Apohem, an online retail pharmacy; Matöppe, a personal grocery store and the retailer-owned mini-mart; Snabbgriss, a restaurant; and Tempo, a mini-mart format of retailer-owned stores. The company serves restaurants, fastfood operators, and cafés; and retailer-owned stores, mini-marts, and other convenience retailers. Axfood AB (publ) was founded in 1958 and is headquartered in Stockholm, Sweden. Axfood AB (publ) operates as a subsidiary of Axretail AB.

About Woolworths Group

Woolworths Group Limited operates retail stores in Australia and New Zealand. It operates through Australian Food, Australian B2B, New Zealand Food, BIG W, and Other segments. The Australian Food segment procures and resells food and related products, and provides services to customers in Australia. The Australian B2B segment engages in procurement and distribution of food and related products for resale to other businesses, as well as provision of supply chain services to business customers in Australia. The New Zealand Food segment is involved in the procurement and resale of food and drinks, and provides services to retail customers in New Zealand. BIG W segment procures and resells discount general merchandise products to customers in Australia. The Other segment operates Quantium and MyDeal retail stores The company was formerly known as Woolworths Limited and changed its name to Woolworths Group Limited in December 2017. Woolworths Group Limited was incorporated in 1924 and is based in Bella Vista, Australia.