Comparing Kenvue (NYSE:KVUE) and Grocery Outlet (NASDAQ:GO)

Kenvue (NYSE:KVUE) and Grocery Outlet (NASDAQ:GO) are both consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, earnings, risk, profitability, institutional ownership, dividends and valuation.

Profitability

This table compares Kenvue and Grocery Outlet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kenvue	9.55%	20.02%	7.74%
Grocery Outlet	-0.10%	5.86%	2.13%

Earnings & Valuation

This table compares Kenvue and Grocery Outlet”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kenvue	$15.46 billion	2.10	$1.03 billion	$0.75	22.56
Grocery Outlet	$4.37 billion	0.25	$39.47 million	($0.05)	-226.80

Kenvue has higher revenue and earnings than Grocery Outlet. Grocery Outlet is trading at a lower price-to-earnings ratio than Kenvue, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations and price targets for Kenvue and Grocery Outlet, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kenvue	0	13	5	1	2.37
Grocery Outlet	2	7	4	0	2.15

Kenvue currently has a consensus target price of $20.23, indicating a potential upside of 19.58%. Grocery Outlet has a consensus target price of $15.55, indicating a potential upside of 37.09%. Given Grocery Outlet’s higher possible upside, analysts plainly believe Grocery Outlet is more favorable than Kenvue.

Risk & Volatility

Kenvue has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500. Comparatively, Grocery Outlet has a beta of 0.47, suggesting that its share price is 53% less volatile than the S&P 500.

Insider and Institutional Ownership

97.6% of Kenvue shares are held by institutional investors. Comparatively, 99.9% of Grocery Outlet shares are held by institutional investors. 0.2% of Kenvue shares are held by insiders. Comparatively, 4.5% of Grocery Outlet shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Kenvue beats Grocery Outlet on 12 of the 15 factors compared between the two stocks.

About Kenvue

Kenvue Inc. operates as a consumer health company worldwide. The company operates through three segments: Self Care, Skin Health and Beauty, and Essential Health. The Self Care segment offers cough, cold and allergy, pain care, digestive health, smoking cessation, eye care, and other products under the Tylenol, Motrin, Benadryl, Nicorette, Zarbee's, ORSLTM, Rhinocort, Calpol, and Zyrtec brands. The Skin Health and Beauty segment provides face and body care, hair, sun, and other care products under the Neutrogena, Aveeno, Dr.Ci:Labo, Le Petit Marseillais, Lubriderm, Rogaine, and OGX brand names. The Essential Health segment offers oral and baby, women's health, wound, and other care products under the Listerine, Johnson's, Band-Aid, and Stayfree, o.b., tampons, Carefree, and Desitin Diaper Rash brands. The company was incorporated in 2022 and is headquartered in Skillman, New Jersey.

About Grocery Outlet

Grocery Outlet Holding Corp. operates as a retailer of consumables and fresh products sold through independently operated stores in the United States. Its stores offer products in various categories, such as dairy and deli, produce, floral, fresh meat, seafood products, grocery, general merchandise, health and beauty care, frozen food, beer and wine, and ethnic products. The company was founded in 1946 and is headquartered in Emeryville, California.