Head to Head Contrast: J.C. Penney Company, Inc. Holding (JCP) vs. Roundy's (RNDY)

J.C. Penney Company, Inc. Holding (NYSE: JCP) and Roundy's (NYSE:RNDY) are both small-cap retail/wholesale companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, dividends, profitability and institutional ownership.

Profitability

This table compares J.C. Penney Company, Inc. Holding and Roundy's’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
J.C. Penney Company, Inc. Holding -1.43% 7.60% 1.04%
Roundy's -0.89% N/A -3.14%

Earnings and Valuation

This table compares J.C. Penney Company, Inc. Holding and Roundy's’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
J.C. Penney Company, Inc. Holding $12.55 billion 0.08 $1.00 million ($0.58) -5.67
Roundy's N/A N/A N/A ($0.06) -60.00

J.C. Penney Company, Inc. Holding has higher revenue and earnings than Roundy's. Roundy's is trading at a lower price-to-earnings ratio than J.C. Penney Company, Inc. Holding, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

J.C. Penney Company, Inc. Holding has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500. Comparatively, Roundy's has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for J.C. Penney Company, Inc. Holding and Roundy's, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
J.C. Penney Company, Inc. Holding 2 17 1 0 1.95
Roundy's 0 0 0 0 N/A

J.C. Penney Company, Inc. Holding presently has a consensus price target of $4.86, indicating a potential upside of 47.70%. Given J.C. Penney Company, Inc. Holding’s higher probable upside, analysts plainly believe J.C. Penney Company, Inc. Holding is more favorable than Roundy's.

Institutional & Insider Ownership

70.5% of J.C. Penney Company, Inc. Holding shares are held by institutional investors. 1.0% of J.C. Penney Company, Inc. Holding shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

J.C. Penney Company, Inc. Holding beats Roundy's on 7 of the 10 factors compared between the two stocks.

About J.C. Penney Company, Inc. Holding

J. C. Penney Company, Inc. is a holding company. The Company’s business consists of selling merchandise and services to consumers through its department stores and its Website at jcpenney.com. Its department stores and Website generally serve the same type of customers, its Website offers virtually the same mix of merchandise as its store assortment and other categories, and its department stores generally accept returns from sales made in stores and through its Website. It fulfills online customer purchases by direct shipment to the customer from its distribution facilities and stores or from its suppliers’ warehouses and by in store customer pick up. The Company sells family apparel and footwear, accessories, fine and fashion jewelry, beauty products through Sephora inside JCPenney, home furnishings and appliances. In addition, its department stores provide its customers with services, such as styling salon, optical, portrait photography and custom decorating.

About Roundy's

Roundy’s, Inc. is a Midwest supermarket chain. The Company offers a range of products, stocking around 45,000 different items. Its stores sell nationally advertised brands, as well as products under the Roundy’s own-brand labels. Its products are classified into non-perishable, perishable and non-food. Non-perishable food categories include grocery, frozen and dairy products. Perishable categories include produce, meat, seafood, deli, bakery and floral. Non-food includes general merchandise, health and beauty care, pharmacy and alcohol. It classifies products into primary categories, including grocery, frozen and dairy; produce; meat and seafood; bakery; deli, cheese and prepared foods; floral; general merchandise; alcohol; pharmacy; and health and beauty care. Its retail operations consists of around 148 grocery stores, with 119 stores in Wisconsin operating under the Pick ‘n Save, Copps and Metro Market banners and 29 stores in Illinois operating under the Mariano’s banner.

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