Critical Contrast: Albertsons Companies (NYSE:ACI) and Lion (OTCMKTS:LIOPF)

Lion (OTCMKTS:LIOPF) and Albertsons Companies (NYSE:ACI) are both mid-cap consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, profitability, valuation and earnings.

Profitability

This table compares Lion and Albertsons Companies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lion	6.52%	8.29%	5.58%
Albertsons Companies	0.08%	45.59%	3.83%

Insider and Institutional Ownership

71.3% of Albertsons Companies shares are owned by institutional investors. 1.2% of Albertsons Companies shares are owned by 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.

Risk and Volatility

Lion has a beta of 0.29, suggesting that its stock price is 71% less volatile than the S&P 500. Comparatively, Albertsons Companies has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Lion and Albertsons Companies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lion	0	1	0	0	2.00
Albertsons Companies	3	9	5	0	2.12

Albertsons Companies has a consensus target price of $15.31, indicating a potential upside of 31.57%. Given Albertsons Companies’ stronger consensus rating and higher possible upside, analysts plainly believe Albertsons Companies is more favorable than Lion.

Earnings & Valuation

This table compares Lion and Albertsons Companies”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lion	$2.82 billion	1.13	$184.84 million	$0.67	17.02
Albertsons Companies	$83.17 billion	0.07	$217.40 million	$0.08	145.44

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

Summary

Albertsons Companies beats Lion on 10 of the 14 factors compared between the two stocks.

About Lion

Lion Corporation manufactures and sells consumer and industrial products in Japan and internationally. It operates through three segments: Consumer Products Business, Industrial Products Business, and Overseas Business. The company provides dental and oral care products, including toothpastes, toothbrushes, dental floss, dental rinses, mouthwashes, periodontitis ointments, and denture products; body care products, such as shampoos and conditioners, hand soaps, sanitizers, wet wipes, body washes, skin and acne care products, antiperspirants and deodorants, hair-nourishment treatments, men's care and toiletries products, and foot care products. It offers antipyretic analgesics, eye drops and eye care products, cold medicines, gargles, cold relief products, topical anti-inflammatory analgesics, antidiarrheal and gastrointestinal medicines, health tonic drinks and vitamin supplements, acne and anti-drowsiness medicines, and dermatologic agents. In addition, the company offers fabric care products, such as laundry detergent, delicate detergent, prewash treatment, stain remover, bleach, and fabric softener; clothing care products; household cleaners; kitchen cleanup products comprises dishwashing detergents and antibacterial and deodorizing products; and food preparation products. Further, it provides health and beauty food products consisting of supplements and health tonic drinks; specialty chemicals, and chemical products, include rubber processing and additive agents, mandrel release agents, fatty acid methyl esters, plant-based electrical insulating oils, concrete admixtures, surfactants, and cosmetics ingredients, as well as electro-conductive carbon black and pressure-sensitive adhesives; pet supplies; and gift and special-order products. The company was founded in 1891 and is headquartered in Tokyo, Japan.

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.