George Weston (OTCMKTS:WNGRF) and Kroger (NYSE:KR) are both large-cap consumer staples companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, earnings, analyst recommendations, valuation and risk.
Institutional and Insider Ownership
0.0% of George Weston shares are held by institutional investors. Comparatively, 79.7% of Kroger shares are held by institutional investors. 1.1% of Kroger shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Risk and Volatility
George Weston has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500. Comparatively, Kroger has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500.
This is a breakdown of current ratings and recommmendations for George Weston and Kroger, as provided by MarketBeat.com.
Kroger has a consensus price target of $31.56, suggesting a potential upside of 10.90%. Given Kroger’s higher probable upside, analysts clearly believe Kroger is more favorable than George Weston.
This table compares George Weston and Kroger’s net margins, return on equity and return on assets.
George Weston pays an annual dividend of $1.55 per share and has a dividend yield of 2.3%. Kroger pays an annual dividend of $0.56 per share and has a dividend yield of 2.0%. Kroger pays out 27.5% of its earnings in the form of a dividend. Kroger has raised its dividend for 10 consecutive years.
Earnings and Valuation
This table compares George Weston and Kroger’s revenue, earnings per share and valuation.
Kroger has higher revenue and earnings than George Weston.
Kroger beats George Weston on 11 of the 15 factors compared between the two stocks.
About George Weston
George Weston Limited engages in the food processing and distribution business in Canada and internationally. The company's Weston Foods segment produces fresh, frozen, and specialty bakery products, such as breads, rolls, bagels, flatbreads, rye bread, tortillas, doughnuts, cakes, pies, cookies, crackers, and other baked goods through national and regional supermarkets, wholesale and club stores, dollar stores, convenience stores, food service distributors, and outlets. This segment also supplies control brand products to retailers and consumer food companies; ice cream cones and sandwich wafers to manufacturers in the frozen novelty; and girl scout cookies. The company's Loblaw segment provides grocery, pharmacy, health and beauty, apparel, general merchandise, credit card services, insurance brokerage services, gift cards, and telecommunication services. This segment operates approximately 2,300 corporate, franchised, and associate-owned locations. It operates retail drug stores under the Shoppers Drug Mart and Pharmaprix names that offer over-the-counter medications, health and beauty aids, cosmetics and fragrances, seasonal products, and household essentials; and Shoppers Home Health Care stores, which sells and services assisted-living devices, medical equipment, home-care products, and durable mobility equipment to institutional and retail customers. This segment also provides specialty drug distribution, pharmacy, and patient support services, as well as pharmaceutical products and services to long-term care facilities; owns, develops, and manages retail and commercial real estate with a portfolio consisting of 435 properties primarily focusing on supermarket-anchored shopping centers, supermarkets, and other commercial properties, as well as offers financial services under the President's Choice Financial brand. The company was founded in 1882 and is headquartered in Toronto, Canada. George Weston Limited is a subsidiary of Wittington Investments, Limited.
The Kroger Co., together with its subsidiaries, operates as a retailer in the United States. It also manufactures and processes food products for sale in its supermarkets. The company operates supermarkets, multi-department stores, jewelry stores, and convenience stores. Its combination food and drug stores offer natural food and organic sections, pharmacies, general merchandise, pet centers, fresh seafood, and organic produce; multi-department stores provide general merchandise items, such as apparel, home fashion and furnishings, outdoor living, electronics, automotive products, toys, and fine jewelry; and price impact warehouse stores offer grocery, and health and beauty care items, as well as meat, dairy, baked goods, and fresh produce items. The company's marketplace stores comprise full-service grocery, pharmacy, health and beauty care departments, and perishable goods, as well as general merchandise, including apparel, home goods, and toys; and convenience stores comprise a limited assortment of staple food items and general merchandise, as well as sells fuel. It operates under the banner brands, such as Kroger, Ralphs, Fred Meyer, King Soopers, etc., as well as Simple Truth and Simple Truth Organic brands. As of March 8, 2018, the company operated 2,800 retail food stores under various banner names, as well as an online retail store. The Kroger Co. was founded in 1883 and is based in Cincinnati, Ohio.