Krispy Kreme Doughnuts (NYSE: KKD) and SuperValu (NYSE:SVU) 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 valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.

Profitability

This table compares Krispy Kreme Doughnuts and SuperValu’s 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%
SuperValu 4.08% 41.33% 2.32%

Risk and Volatility

Krispy Kreme Doughnuts has a beta of 1.52, suggesting that its stock price is 52% more volatile than the S&P 500. Comparatively, SuperValu has a beta of 2.29, suggesting that its stock price is 129% more volatile than the S&P 500.

Insider & Institutional Ownership

83.3% of SuperValu shares are held by institutional investors. 1.7% of SuperValu shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Krispy Kreme Doughnuts and SuperValu’s revenue, earnings per share 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
SuperValu $12.48 billion 0.06 $650.00 million $14.54 1.35

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.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Krispy Kreme Doughnuts and SuperValu, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Krispy Kreme Doughnuts 0 0 0 0 N/A
SuperValu 1 6 2 0 2.11

SuperValu has a consensus price target of $26.29, suggesting a potential upside of 33.50%. Given SuperValu’s higher possible upside, analysts plainly believe SuperValu is more favorable than Krispy Kreme Doughnuts.

Summary

SuperValu beats Krispy Kreme Doughnuts on 8 of the 10 factors compared between the two stocks.

About Krispy Kreme Doughnuts

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.

About SuperValu

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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