Critical Analysis: Village Farms International (NASDAQ:VFF) & Albertsons Companies (NYSE:ACI)

Albertsons Companies (NYSE:ACI) and Village Farms International (NASDAQ:VFF) are both consumer staples companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.

Valuation & Earnings

This table compares Albertsons Companies and Village Farms International”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Albertsons Companies	$81.72 billion	0.12	$958.60 million	$1.55	11.97
Village Farms International	$351.98 million	1.05	-$35.85 million	$0.18	17.72

Albertsons Companies has higher revenue and earnings than Village Farms International. Albertsons Companies is trading at a lower price-to-earnings ratio than Village Farms International, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Albertsons Companies and Village Farms International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Albertsons Companies	1.06%	38.00%	4.32%
Village Farms International	7.47%	1.98%	1.35%

Volatility & Risk

Albertsons Companies has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500. Comparatively, Village Farms International has a beta of 1.29, meaning that its stock price is 29% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Albertsons Companies and Village Farms International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Albertsons Companies	2	5	9	0	2.44
Village Farms International	0	2	2	0	2.50

Albertsons Companies presently has a consensus target price of $21.58, indicating a potential upside of 16.33%. Given Albertsons Companies’ higher probable upside, analysts plainly believe Albertsons Companies is more favorable than Village Farms International.

Institutional and Insider Ownership

71.3% of Albertsons Companies shares are held by institutional investors. Comparatively, 12.1% of Village Farms International shares are held by institutional investors. 1.4% of Albertsons Companies shares are held by company insiders. Comparatively, 12.6% of Village Farms International shares are held by company 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

Albertsons Companies beats Village Farms International on 8 of the 14 factors compared between the two stocks.

About Albertsons Companies

Albertsons Companies, Inc., through its subsidiaries, engages in the operation of food and drug stores in the United States. The company’s food and drug retail stores offer grocery products, general merchandise, health and beauty care products, pharmacy, fuel, and other items and services. It also manufactures and processes food products for sale in stores. It operates stores under various banners, including Albertsons, Safeway, Vons, Pavilions, Randalls, Tom Thumb, Carrs, Jewel-Osco, Acme, Shaw’s, Star Market, United Supermarkets, Market Street, Haggen, Kings Food Markets, and Balducci’s Food Lovers Market; and pharmacies, in-store branded coffee shops, adjacent fuel centers, distribution centers, and manufacturing facilities, as well as various digital platforms. Albertsons Companies, Inc. was founded in 1860 and is headquartered in Boise, Idaho. Albertsons Companies, Inc. operates as a subsidiary of Albertsons Investor Holdings LLC.

About Village Farms International

Village Farms International, Inc., together with its subsidiaries, produces, markets, and sells greenhouse-grown tomatoes, bell peppers, and cucumbers in North America. It operates through four segments: Produce, Cannabis-Canada, Cannabis-U.S., and Energy. The company also produces and supplies cannabis products to other licensed providers and provincial governments in Canada and internationally; develops and sells cannabinoid-based health and wellness products, including ingestible, edibles, and topical applications; and produces power. It markets and distributes its products under the Village Farms brand name to retail supermarkets and fresh food distribution companies, as well as products produced under exclusive and non-exclusive arrangements from greenhouse supply partners. The company was formerly known as Village Farms Canada Inc. and changed its name to Village Farms International, Inc. in December 2009. Village Farms International, Inc. was founded in 1989 and is headquartered in Delta, Canada.