United Natural Foods (UNFI) vs. Its Peers Critical Analysis
United Natural Foods (NASDAQ: UNFI) is one of 23 public companies in the “Food Retail & Distribution” industry, but how does it weigh in compared to its competitors? We will compare United Natural Foods to similar companies based on the strength of its analyst recommendations, risk, profitability, institutional ownership, dividends, valuation and earnings.
Insider and Institutional Ownership
56.2% of shares of all “Food Retail & Distribution” companies are held by institutional investors. 1.3% of United Natural Foods shares are held by company insiders. Comparatively, 17.2% of shares of all “Food Retail & Distribution” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares United Natural Foods and its competitors revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|United Natural Foods||$9.27 billion||$318.94 million||15.42|
|United Natural Foods Competitors||$21.46 billion||$1.01 billion||38.79|
United Natural Foods’ competitors have higher revenue and earnings than United Natural Foods. United Natural Foods is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
This table compares United Natural Foods and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|United Natural Foods||1.40%||8.10%||4.50%|
|United Natural Foods Competitors||1.46%||13.07%||4.12%|
This is a summary of recent ratings and recommmendations for United Natural Foods and its competitors, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|United Natural Foods||5||9||5||0||2.00|
|United Natural Foods Competitors||647||1353||1402||23||2.23|
United Natural Foods currently has a consensus target price of $42.18, indicating a potential upside of 6.86%. As a group, “Food Retail & Distribution” companies have a potential upside of 4.63%. Given United Natural Foods’ higher probable upside, analysts plainly believe United Natural Foods is more favorable than its competitors.
Risk & Volatility
United Natural Foods has a beta of 1.43, indicating that its share price is 43% more volatile than the S&P 500. Comparatively, United Natural Foods’ competitors have a beta of 0.93, indicating that their average share price is 7% less volatile than the S&P 500.
United Natural Foods competitors beat United Natural Foods on 10 of the 13 factors compared.
About United Natural Foods
United Natural Foods, Inc. is a distributor and retailer of natural, organic and specialty products. The Company’s segments include Wholesale and Other. The Wholesale segment is engaged in the national distribution of natural, organic and specialty foods, produce and related products in the United States and Canada. The Other segment includes a retail division, which engages in the sale of natural foods and related products to the general public through retail storefronts on the east coast of the United States; a manufacturing division, which engages in importing, roasting and packaging of nuts, seeds, dried fruit and snack items, and its branded product lines. Its operations consist of three operating divisions: Wholesale Division, Retail Division, and Manufacturing and Branded Products divisions. As of July 30, 2016, the Company had offered 100,000 natural, organic and specialty foods, and non-food products, consisting of national, regional and private-label brands.
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